Convex Supply Curves

• 成果类型: Article
• 署名作者: Boehm, Christoph E.; Pandalai-Nayar, Nitya
• 署名单位: University of Texas System; University of Texas Austin; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20210811
• 发表日期: 2022
• 页码: 3941-3969
• 关键词: capacity constraints; labor share; BUSINESS; fluctuations; INVESTMENT

摘要

We provide evidence that industries' supply curves are convex. To guide our empirical analysis, we develop a model in which capac-ity constraints at the firm level generate supply curves that are convex in logs at the industry level. The industry's capacity utili-zation rate is a sufficient statistic for the supply elasticity. Using data on capacity utilization and three different instruments, we estimate the supply curve and find robust evidence for an econom-ically sizable degree of convexity. The nonlinearity we identify has several macroeconomic implications, including that responses to shocks are state dependent and that the Phillips curve is convex.