Capital Utilization
A Theoretical and Empirical Analysis

This book presents the theory of capital utilization, a discussion of the econometrics of capital utilization, and econometric tests of the theory using international data.

Roger R. Betancourt (Author), Christopher K. Clague (Author)

9780521070287, Cambridge University Press

Paperback / softback, published 31 July 2008

268 pages
22.9 x 15.2 x 1.5 cm, 0.4 kg

This book presents the theory of capital utilization, a discussion of the econometrics of capital utilization, and econometric tests of the theory using international data. Capital utilization, defined as the proportion of time that capital is working productively, is mainly affected by shift-working. Capital utilization is an important economic variable that has received serious attention from economists only since the mid-1960s In the first part, the authors provide a synthesis of current knowledge, combining a consistent statement of existing theory with some major extensions. In the second part, they turn to the econometrics, first discussing the appropriate methodology and then testing the theory on data from several countries. This empirical work is considerably more sophisticated than previous studies on this topic. Having established the theory and tested it, they move on to consider policy, the relationship between capital utilization and economic growth, and the place of shift-work in the dual economy.

Introduction
Part I. Shift-work and the theory of the firm: 1. Cost minimization
2. Specific functional forms: additional results
3. Profit maximization
Part II. Estimation: 4. The estimation framework
5. Econometric literature on capital utilization: an Interpretation
6. Empirical implementation
Part III. Results: 7. Individual-country results
8. International comparisons
Part IV. Implications: 9. Analysis of policy changes
10. Capital utilization and economic growth
11. Shift-work and the dual economy
12. Conclusions and speculations.

Subject Areas: Investment & securities [KFFM], Economic theory & philosophy [KCA]