Short-term increasing returns to production factors are usually found in empirical studies. We argue they can be due to omitted variables, particularly the intensity of factor utilisation. Thanks to original French firm-level data (1992-2008), we show how increasing returns to scale disappear...

We study production factor adjustment taking into account factor utilization in multiple dimensions (labor and capital working time, capital capacity utilization) through a unique survey among French manufacturing firms. This survey also allows us to examine the impact of obstacles to increasing...