Effective demand, exogenous normal utilization and endogenous capacity in the long run. Evidence from a CVAR analysis for the US

Using the Cointegrated VAR framework, we provide evidence for the US manufacturing sector that the principle of effective demand in a growth context, by which a permanent demand shock has a permanent growth effect, is consistent with the stylized fact of a stationary rate of capacity utilization, since production capacities adjust endogenously to current output.

MoreLess

Year of publication:	2012
Authors:	Schoder, Christian
Institutions:	Institut für Makroökonomie und Konjunkturforschung (IMK), Hans Böckler Stiftung
Subject:	effective demand \| stationary utilization rate \| endogenous capacity \| cointegrated vector autoregression

More details

Extent:	application/pdf
Series:	IMK Working Paper. - ISSN 1861-2199.
Type of publication:	Book / Working Paper
Notes:	Number 103-2012 17 pages
Classification:	E12 - Keynes; Keynesian; Post-Keynesian ; E22 - Capital; Investment (including Inventories); Capacity ; C22 - Time-Series Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010625646