Limited labor-capital substitution leads to inefficiencies and anti-competitive distortions.
This dissertation explores how firms' actions impact the economy. It looks at how capital and labor can be swapped, the effects of anti-competitive behavior, and the impact of merger regulations on firm size. The researchers found that capital and labor are not easily interchangeable, cartels harm competition beyond their members, and blocking large mergers may stabilize firm sizes. The study also suggests that the methods used can be applied to other areas, such as analyzing mortality rates.