The paper presents a micro econometric model of capital utilization and retirement. Some estimates of a firm's discrete … decision problem with regard to an existing piece of capital--whether to operate, hold idle or retire it--are obtained, in the … used to simulate effects of product and input price changes, and changes in the size and age of capital on a firm …

The paper presents a micro econometric model of capital utilization and retirement. Some estimates of a firm's discrete … decision problem with regard to an existing piece of capital--whether to operate, hold idle or retire it--are obtained, in the … used to simulate effects of product and input price changes, and changes in the size and age of capital on a firm …

From an engineering perspective, a capital good’s service is energy conversion - e.g., the physical 'work' done by a … the utilization of the capital stock better. In a growth accounting exercise, this results in higher TFP growth rates …