TY  - JOUR
AU  - Holmes,Thomas J.
AU  - Mitchell,Matthew F.
TI  - A Theory of Factor Allocation and Plant Size
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10079
PY  - 2003
Y2  - November 2003
UR  - http://www.nber.org/papers/w10079
L1  - http://www.nber.org/papers/w10079.pdf
N1  - Author contact info:
Thomas J. Holmes
Department of Economics
University of Minnesota
4-101 Hanson Hall
1925 Fourth Street South
Minneapolis, MN 55455
Tel: 612/625-4512
Fax: 612/624-0209
E-Mail: holmes@umn.edu
AB  - In this paper we develop a theory of how factors interact at the plant level. The theory has implications for: (1) the micro foundations for capital skill complementarity (2) the relationship between factor allocation and plant size and (3) the effects of trade and growth on the skill premium. The theory is consistent with certain facts about factor allocation and factor price changes in the 19th and 20th centuries.
ER  -