The Italian Automotive Industry and Economies of Scale.

This article investigates scale economies in the Italian automobile industry as well as substitution possibilities between inputs and direct and cross-price elasticities of factor demand, utilizing a cost function with capital, labor, domestic, and imported intermediate goods inputs. Continuing Euro...

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Publicado en:Contemporary Economic Policy Vol. 21; no. 3; pp. 329 - 338
Autores principales: Truett, Lila J., Truett, Dale B.
Formato: Artículo
Publicado: Wiley-Blackwell July 2003
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Italian Automotive Industry and Economies of Scale.
      aug:
        au:
          Truett, Lila J.
          Truett, Dale B.
      su:
        Fiat SpA
        Mathematical models in business
        Economies of scale
        Elasticity (Economics)
        Automobile industry
        Italy
      sug:
        subj:
          Italy
          Fiat SpA
          Mathematical models in business
          Economies of scale
          Elasticity (Economics)
          Automobile industry
      ab: This article investigates scale economies in the Italian automobile industry as well as substitution possibilities between inputs and direct and cross-price elasticities of factor demand, utilizing a cost function with capital, labor, domestic, and imported intermediate goods inputs. Continuing European integration makes economies of scale an important issue. The study results are consistent with economies of scale in the Italian motor vehicle industry, a particularly interesting finding because the Italian automotive industry consists primarily of one firm, Fiat. The estimated direct price elasticities suggest that capital is most responsive to own price changes, and estimated cross elasticities imply that all inputs are substitutes. Reprinted by permission of the publisher.
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    language: English
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