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dc.contributor.author
Etter, Richard
dc.contributor.author
Graff, Michael
dc.contributor.author
Müller, Jürg
dc.date.accessioned
2017-06-12T18:01:27Z
dc.date.available
2017-06-12T18:01:27Z
dc.date.issued
2008
dc.identifier.uri
http://hdl.handle.net/20.500.11850/125235
dc.description.abstract
The rate of capacity utilisation is an important business cycle indicator, as it relates directly to the stress on the current capacity to produce goods and services. From a policy perspective, technical bottlenecks indicate inflationary pressure, whereas idle capacity above normal points to a deflationary situation. Unfortunately, it is not clear which rate of capacity utilisa-tion should be regarded as normal. In addition, the level of normal capacity utilisation can change over time. When the substitutability of physical capital declines, firms will tend to keep more idle reserves to make sure they can cope with unexpected orders. On the other hand, with technical and organisational progress making production more flexible, the level of normal rate of capacity utilisation could increase. In a similar fashion, a move on to just-in-time production could lift the normal rate of capacity utilisation. These reflections imply that the rate of capacity utilisation is not, or not always, a stationary variable. However, due to the ambiguity of the theoretical predictions, it is not clear whether we should expect an increase or a decline in the level that is considered normal. In this paper we refer to business tendency surveys from 34 countries to address this question empirically. Apart from this ‘global’ per-spective, we undertake a more detailed examination of a large set of micro data referring to Switzerland. Our main findings are that the level of capacity utilisation to be considered nor-mal is indeed not constant. During the last few decades, it appears to have decreased rather than increased.
dc.language.iso
en
dc.publisher
KOF Swiss Economic Institute, ETH Zurich
dc.subject
Capacity utilisation
dc.subject
Normal utilisation
dc.subject
Non-stationarity
dc.title
Is «Normal» Capacity Utilisation Constant over Time? Analyses with Macro and Micro Data from Business Tendency Surveys
dc.type
Report
ethz.size
29 p.
ethz.notes
See also: http://e-citations.ethbib.ethz.ch/view/pub:152442.
ethz.publication.place
Zürich
ethz.publication.status
published
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
ethz.date.deposited
2017-06-12T18:02:07Z
ethz.source
ECIT
ethz.identifier.importid
imp5936550c8fa6427850
ethz.ecitpid
pub:187820
ethz.eth
yes
ethz.availability
Metadata only
ethz.rosetta.installDate
2017-07-15T07:04:21Z
ethz.rosetta.lastUpdated
2019-01-02T06:57:34Z
ethz.rosetta.versionExported
true
ethz.COinS
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