Capital Utilization and Capital Accumulation: Theory and Evidence
|
NBER Working Paper No. 1900 (Also Reprint No. r0867)
Issued in May 1987
NBER Program(s): EFG
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 utilization. A direct measure of capital utilization --the workweek of capital--is incorporated into the theory and estimates. The estimates imply that capital stock is costly to adjust while the work week of capital is essentially costless to adjust. The estimated response of the capital stock to changes in its price and in the required rate of return is more rapid than found in other estimates.
Published: Shapiro, Matthew D. "Capital Utilization and Capital Accumulation: Theoryand Evidence," Journal of Applied Econometrics, Vol. 1, No. 3, (1986), pp. 211-234.
This paper is available as PDF (570 K) or DjVu (423 K) (Download viewer) or via email.
Machine-readable bibliographic record -
MARC,
RIS,
BibTeX
|
|
|
About
Support
The research activities of the NBER are funded by grants from federal research agencies, by private foundations, and by generous donations from our corporate associates and from private individuals. The NBER is a non-profit, 501(c)(3) organization. For information on supporting the NBER, please contact:
Mr. Denis Healy, Director of Development
NBER
1050 Massachusetts Avenue
Cambridge, MA 02138-5398
ph: 617-868-3900
email: dhealy@nber.org
Close