 Regional Measures of Capacity Utilization in the 1980sGasper A. Garofalo and Devinder M. Malhotra The Review of Economics and Statistics, 2000, vol. 79, issue 3, 415-421 Abstract: This paper presents a model to estimate the rate of capacity utilization (CU) in the manufacturing sector by state. Consistent measures of state-level CU rates have been unavailable since 1982. The lack of a capacity measure has hindered regional studies of capital formation, long-run output growth, and productivity growth. Our model employs a neoclassical approach to estimate CU. We estimate a model to determine the optimal level of production and compare it with the actual level in order to define our CU index. Our results show that states in the West North Central, South Atlantic, and Pacific census divisions tend to have a CU index consistently above the nation's average. On the other hand, states in the East North Central and West South Central census divisions tend to have a CU index below the nation's average. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology Date: 2000 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:79:y:2000:i:3:p:415-421 Ordering information: This journal article can be ordered from Access Statistics for this article The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu More articles in The Review of Economics and Statistics from MIT Press |
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