Search Results - subject:"Capacity utilization"

Why is Productivity Procyclical? Why Do We Care?

Basu, Susanto; Fernald, John G. - 2021

Productivity rises in booms and falls in recessions. There are four main explanations for this procyclical productivity: (i) procyclical technology shocks, (ii) widespread imperfect competition and increasing returns, (iii) variable utilization of inputs over the cycle, and (iv) resource...

Persistent link: https://www.econbiz.de/10013240533

Capital Utilization and Capital Accumulation : Theory and Evidence

Shapiro, Matthew D. - 2021

A firm may acquire additional caoital input by purchasing new capital or by increasing the utilization of its current capital. The margin between capital accumulation and capital utilization is studied in a model of dynamic factor demand where the firm chooses capital, labor, and their rates of...

Persistent link: https://www.econbiz.de/10013240644

Collusion Sustainability with a Capacity Constrained Firm

Madio, Leonardo; Pignataro, Aldo - 2021

We study an infinitely repeated oligopoly game in which firms compete on quantity and one of them is capacity constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little incentive to deviate from a cartel. We also present...

Persistent link: https://www.econbiz.de/10013241730

Utilizing Additive Manufacturing and Mass Customization under Capacity Constraints

Lacroix, Rachel; Timonina-Farkas, Anna; Seifert, Ralf W. - 2021

Additive manufacturing (AM), originally used for prototyping, is increasingly adopted for custom final part production across different industries. This usage brings new manufacturing opportunities for mass customization (MC). However, printing speed and production volume are two barriers to AM...

Persistent link: https://www.econbiz.de/10013242477

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

Baxter, Marianne; Farr, Dorsey - 2021

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....

Persistent link: https://www.econbiz.de/10013244882

Putty-Clay and Investment : a Business Cycle Analysis

Gilchrist, Simon; Williams, John C. - 2021

embodied technology, investment irreversibility, and variable capacity utilization. Low short-run capital …

Persistent link: https://www.econbiz.de/10013247401

The Economics of Labor Adjustment : Mind the Gap

Cooper, Russell; Willis, Jonathan L. - 2021

We study the inferences about labor adjustment costs obtained by the 'gap methodology' of Caballero and Engel [1993] and Caballero, Engel and Haltiwanger [1997]. In that approach, the policy function of a manufacturing plant is assumed to depend on the gap between a target and the current level...

Persistent link: https://www.econbiz.de/10013232426

The VAT under Excess Capacity : The Case of Ethiopia

van Oordt, Marius - 2021

This paper considers the design of a VAT where the economy is not at full capacity, as is the case in most developing countries. It critically examines the importance of efficiency and how tax policy can raise the stock of productive resources in an economy. Against this background, policy...

Persistent link: https://www.econbiz.de/10013216638

General Airport Slot Allocation Problems

Ho, Ken; Rodivilov, Alexander - 2021

We analyze multi-runway airport slot allocation problems during adverse weather. The number of slots assigned in any time interval is the same across feasible and non-wasteful landing schedules. The structure of the set of assigned slots is more complex than its counterpart in the single-runway...

Persistent link: https://www.econbiz.de/10013212824

On the Economic Interpretation and Measurement of Optimal Capacity Utilization with Anticipatory Expectations

Morrison Paul, Catherine J. - 2021

This study builds on recent research giving the notion of capacity utilization clearer economic foundations. In this … research optimal output Y* is defined as the minimum point on the firm's short-run average total cost curve, and capacity … utilization is then computed as CU=Y/Y*, where Y is actual output. Here I extend these concepts to include adjustment costs due to …

Persistent link: https://www.econbiz.de/10013212910