Data and Code for: Convex Supply Curves

Principal Investigator(s): View help for Principal Investigator(s) Christoph Boehm, University of Texas-Austin; Nitya Pandalai-Nayar, University of Texas-Austin

Version: View help for Version V1

Name	File Type	Size	Last Modified
conc_sic87_naics97.xlsx	application/vnd.openxmlformats-officedocument.spreadsheetml.sheet	153.7 KB	10/20/2022 06:52:AM
exp_detl_yearly_100n.dta	application/x-stata-dta	179.1 MB	10/20/2022 06:52:AM
exp_detl_yearly_101n.dta	application/x-stata-dta	178.9 MB	10/20/2022 06:52:AM
exp_detl_yearly_102n.dta	application/x-stata-dta	173.5 MB	10/20/2022 06:52:AM
exp_detl_yearly_103n.dta	application/x-stata-dta	181 MB	10/20/2022 06:52:AM
exp_detl_yearly_104n.dta	application/x-stata-dta	86 MB	10/20/2022 06:52:AM
exp_detl_yearly_105n.dta	application/x-stata-dta	88.6 MB	10/20/2022 06:52:AM
exp_detl_yearly_106n.dta	application/x-stata-dta	91.8 MB	10/20/2022 06:52:AM
exp_detl_yearly_107n.dta	application/x-stata-dta	96.8 MB	10/20/2022 06:52:AM
exp_detl_yearly_108n.dta	application/x-stata-dta	103.4 MB	10/20/2022 06:52:AM

Project Description

Summary: We provide evidence that industries' supply curves are convex. To guide our empirical analysis, we develop a model in which capacity constraints at the firm level generate supply curves that are convex in logs at the industry level. The industry's capacity utilization 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 economically 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.

Scope of Project

Subject Terms: Slack; Utilization; Capacity; Supply Curves; State-Dependence; Fiscal Policy; Monetary Policy

JEL Classification:
      E22 Investment; Capital; Intangible Capital; Capacity
      E23 Macroeconomics: Production
      E32 Business Fluctuations; Cycles
      E52 Monetary Policy
      E62 Fiscal Policy

Geographic Coverage: USA

Universe: US 3-digit NAICS Manufacturing Industries

Data Type(s): aggregate data

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Published Versions

V1 [2022-11-21]

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