The Effects of Variable Capital Utilization on the Measurement and Properties of Sectoral Productivity : Some International Evidence

Marianne Baxter, Dorsey D. Farr

This paper explores how accounting for variations in factor utilization rates alters the empirical characteristics of productivity residuals in the United States and Canada. Using data on 19 manufacturing industries, we study the behavior of productivity using three proxies for capital services. We find that adjusting for cyclical movements in capital utilization alters many of the empirical characteristics of productivity, both within and across countries

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Year of publication:	September 2001
Authors:	Baxter, Marianne
Other Persons:	Farr, Dorsey D. (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Produktivität \| Productivity \| Messung \| Measurement \| Branche \| Economic sector \| Kanada \| Canada \| Kapazitätsauslastung \| Capacity utilization \| Industrie \| Manufacturing industries

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