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Capital Utilization and Empirical Analysis*

Published online by Cambridge University Press:  17 August 2016

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Extract

« First understand what you are trying to do » is always a good maxim. It is particularly important when what you actually want is not immediately obvious. This seems especially true with discussions of capital utilization, the concept of which, particularly in empirical models, is not always clear. Certainly Bosworth and Westaway identify different dimensions to capital utilization that are used by economists and it is not obvious that either of these corresponds to everyday usage. The present discussion, therefore, is an attempt to be precise about notions of capital utilization in order at least to provide a framework within which one can analyse the concepts involved and consider what measures are appropriate for empirical work.

Type
Part Four: Measurement of Capital Utilisation and Rates of Return
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1984 

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Footnotes

(*)

The ideas discussed here were stimulated as the result of reading the papers by Bosworth & Westaway and Hamlin & Heathfield presented at this conference.

(**)

University of Southampton, Department of Economics.

References

Bosworth, D. and Westaway, A.J. (1984), The Theory and Measurement of Capital Utilisation and its Role in Investment Modelling, presented at this conference.Google Scholar
Hamlin, A.P. and Heathfield, D.F. (1984), Capital Utilization and Investment in a «Mixed» Economy, presented at this conference.Google Scholar
Winston, G.C. and Mccoy, T.O. (1974), Investment and the Optimal Idleness of Capital, Review of Economic Studies, vol. 41, pp. 419428.Google Scholar