Scientific article
Open access

Notes on the accumulation and utilization of capital: Some empirical issues

Published inMetroeconomica, vol. 72, no. 4, p. 679-695
Publication date2021-06
First online date2021-06

The paper makes three contributions. First, it provides an in-depth examination of the Federal Reserve measure of capacity utilization and shows that it is closer to a cyclical indicator than a measure of long-run variations of normal utilization. Other measures, such as the Average Workweek of Capital or the National Emergency Utilization Rate are more appropriate for examining long-run changes in utilization. Second, and related to that, it argues that a relatively stationary measure of utilization is not consistent with any theory of the determination of utilization. Third, based on data on the lifetime of fixed assets it shows that for the issues around the “utilization controversy” the long run is a period after thirty years or more. This makes it a platonic idea for some economic problems.

  • Accumulation
  • Distribution
  • Growth
  • Utilization
Citation (ISO format)
NIKIFOROS, Michalis. Notes on the accumulation and utilization of capital: Some empirical issues. In: Metroeconomica, 2021, vol. 72, n° 4, p. 679–695. doi: 10.1111/meca.12339
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Article (Published version)
ISSN of the journal0026-1386

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