A manufacturing firm can increase its capacity through expansion at existing sites, opening new plants, or relocating to new, larger space. These options are in fact not very good substitutes for one another. This paper argues why one might be preferred to the others and supports its view of the capacity choice with detailed evidence from over 400 plants in New England.

Dennis W. Carlton, Glenn C. Loury; The Limitations of Pigouvian Taxes as a Long-Run Remedy for Externalities*, The Quarterly Journal of Economics, Volume 9

Journal Article A Theory of Job Shopping: A Bayesian Perspective Get access W. Kip Viscusi W. Kip Viscusi Northwestern University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 94, Issue 3, May 1980, Pages 609–614, https://doi.org/10.2307/1884587 Published: 01 May 1980