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Capital Utilization and Returns to Scale

dc.contributor.author Burnside, A Craig
dc.contributor.author Eichenbaum, Martin
dc.contributor.author Rebelo, Sergio T
dc.date.accessioned 2010-06-28T19:04:01Z
dc.date.available 2010-06-28T19:04:01Z
dc.date.issued 1995
dc.identifier.citation Burnside, A. Craig, Eichenbaum, Martin and Rebelo, Sergio. Capital Utilization and Returns to Scale. NBER Macroeconomics Annual. 10 (1995): 67-110. Print.
dc.identifier.uri https://hdl.handle.net/10161/2619
dc.identifier.uri http://www.jstor.org/stable/3585104
dc.description.abstract This paper studies the implications of procyclical capital utilization rates for inference regarding cyclical movements in labor productivity and the degree of returns to scale. We organize our investigation around five questions that we study using a measure of capital services based on electricity consumption: (1) Is the phenomenon of near or actual short-run increasing returns to labor an artifact of the failure to accurately measure capital utilization rates? (2) Can we find a significant role for capital services in aggregate and industry-level production technologies? (3) Is there evidence against the hypothesis of constant returns to scale? (4) Can we reject the notion that the residuals in our estimated production functions represent technology shocks? (5) How does correcting for cyclical variations in capital services affect the statistical properties of estimated aggregate technology shocks? The answer to the first two questions is yes. The answer to the third and fourth questions is no. The answer to the fifth question is "a lot."
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.publisher The University of Chicago Press
dc.subject capital utilization rates
dc.subject labor productivity
dc.subject returns to scalse
dc.title Capital Utilization and Returns to Scale
dc.type Journal article
duke.contributor.id Burnside, A Craig|0331721
dc.relation.journal NBER Macroeconomics Annual


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