The notion of the output gap is crucial in understanding underlying economic trends. The macroeconomic stabilization policy can only be effective for all sectors or regions of the economy if regional or sectoral output gaps are sufficiently coherent. This study proposes a new microeconometric...

This paper studies the role of capacity utilisation in explaining investment behaviour in Italian SMEs and large firms. We propose a framework in which firms with high capacity utilisation are more likely to invest in maintaining a buffer against future shocks. Using firm-level data from the...

The rapid development of digital technology is reshaping the global economic landscape. However, its impact on firms' capacity utilization rate (CUR), particularly through technological innovation, remains unclear. This study investigates this issue by developing an endogenous growth model that...

The aim of this paper is to analyze the effects of interest rates on rates of capacity utilization, capital accumulation and profit in Italy within a post-Kaleckian theoretical framework. The model employed in the analysis, which was developed by Hein/Schoder (2011), is based on monetary-...

Purpose To enrich the research on the economic consequences of enterprise digital development from the perspective of capacity utilization. Design/methodology/approach Using a sample of listed firms from 2010 to 2020, this paper exploits text analysis of annual reports to construct a proxy for...

The investigation into the employment-generating capacity of industries has captured the interest of numerous scholars on a global scale. However, there is a paucity of literature on the impact of the capacity underutilization of dairy processing plants (DPPs) on employment multipliers. This...

In this paper, Structural Vector Autoregressive (SVAR) models of quarterly data between 2007 and 2021 are estimated to assess short-term regimes of aggregate demand and distribution in Germany. The obtained Impulse Response Functions (IRFs) of the conventional neo-Goodwinian baseline case, with...

The neoliberal reforms since the 1980s have resulted in rapid globalization paralleled by worsening income distribution. In this paper, I first show that most countries worldwide (58 of 81) have experienced a decline in the labor share of income, or the wage share, during 1950-2019. Second, I...

This paper analyses capacity markets and proposes an approach to incorporate the flexibility of residential consumers in these markets considering reliability as a differentiated product. We introduce and assess the potential of non-linear pricing schemes, specifically priority pricing...

We extend a standard multivariate filter used to estimate the Output Gap (OG) in Chile to account for large economic shocks, such as those observed during the COVID-19 crisis. We propose two methodological extensions. First, we introduce exogenous supply shocks in the dynamics of potential...

In dieser Studie nehmen wir neben den klassischen Zielen der Frequenzregulierung, wie z. B. der Schaffung wettbewerblicher Marktstrukturen, auch die Aspekte der Nachhaltigkeit und Resilienz in den Blick. So hat z. B. die Ausgestaltung von Versorgungsauflagen für Mobilfunknetzbetreiber im...

This study delves into the origins of excess capacity by examining the reactions of capital, labor, and capital intensity. To achieve this, we have employed a novel three-layered production function model, estimating the elasticity of substitution between capital and labor as a nested layer,...

Excess capacity poses a persistent challenge for airports as they often encounter lumpy capacity in the short run. The excess capacity is primarily influenced by the factors such as uncertain demand, airline competition, and the market structure of the airport industry. However, airport business...

We develop an original method for identifying the structural parameters of the production function and estimate the rate of capacity utilization in 12 EU countries. Our results provide evidence of persistent excess capacity and hysteresis in many EU countries, especially after the 2008’s...

Capacity utilization, and its role in inflation and inequality, has been at the center of the policy discussion in recent times. We study cyclical and distributional dynamics in an economy where capacity utilization choices are explicitly introduced and modeled. In the model, firms face...