TY  - JOUR
AU  - Shapiro,Matthew D.
TI  - Capital Utilization and Capital Accumulation:  Theory and Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1900
PY  - 1987
Y2  - May 1987
UR  - http://www.nber.org/papers/w1900
L1  - http://www.nber.org/papers/w1900.pdf
N1  - Author contact info:
Matthew D. Shapiro
Department of Economics
University of Michigan
611 Tappan St
Ann Arbor, MI 48109-1220
Tel: 734/764-5419
Fax: 734 764-2769
E-Mail: shapiro@umich.edu
AB  - 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.
ER  -