Title
Input substitution, economies of scale, and productivity growth in the U.S. upholstered furniture industry
Document Type
Article
Publication Date
9-1-1992
Publication Title
Applied Economics
Abstract
Cost, factor demand and productivity growth are considered in the upholstered furniture industry over 1958–87. Factors are divided into labour, capital and materials. It is found that all inputs are substitutes in production although substitution elasticities are small. Factor demand is price-inelastic for all inputs. The industry operates around minimum average cost. Productivity growth is small but significant. The results indicate that labour will continue to be important in the industry. However, regional comparative advantage is not related to labour alone; the results suggest that policies to attract or retain the industry must consider the low degree of factor substitution.
Volume
24
Issue
9
First Page
1017
Repository Citation
Seldon, Barry J. and Bullard, Steven H., "Input substitution, economies of scale, and productivity growth in the U.S. upholstered furniture industry" (1992). Faculty Publications. 132.
https://scholarworks.sfasu.edu/forestry/132
Last Page
1025
DOI
https://doi.org/10.1080/00036849200000079
ISSN
0003-6846
Comments
Seldon, B.J., and S.H. Bullard. 1992. Input substitution, economies of scale, and productivity growth in the U.S. upholstered furniture industry. Applied Economics 24:1017-1025