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.

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

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Series:	IMK Working Paper ; 103
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	731565843 [GVK] hdl:10419/105969 [Handle] RePEc:imk:wpaper:103-2012 [RePEc]
Classification:	E12 - Keynes; Keynesian; Post-Keynesian ; E22 - Capital; Investment (including Inventories); Capacity ; C22 - Time-Series Models
Source:	EconStor

Persistent link: https://www.econbiz.de/10010460528