Capital Utilization and Capital Accumulation: Theory and Evidence / Matthew D. Shapiro.

Format:

Book

Author/Creator:

Shapiro, Matthew D.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1900.

NBER working paper series no. w1900

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Capital Utilization and Capital Accumulation

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1986.

Summary:

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.

Notes:

Print version record

April 1986.