Production Function Estimation with Industry Capacity Data

16 Pages Posted: 16 Feb 2001

See all articles by Plutarchos Sakellaris

Plutarchos Sakellaris

University of Maryland - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: August 16, 2000

Abstract

This paper introduces a new data set for the analysis of productivity in U.S. manufacturing. It consists of data on production and input levels when the plants in an industry operate at capacity. The estimates are consistent with those obtained using data on actual operations from the ASM. As an application, I use this data to estimate the rate of growth of technological change that is embodied in equipment capital. The estimates imply a larger role of equipment investment and embodied technological change on economic growth than is conventionally assumed.

Keywords: Productive Capacity, Capacity Utilization, Productivity Growth, Embodied Techological Change, Production Function

JEL Classification: D24, E22

Suggested Citation

Sakellaris, Plutarchos, Production Function Estimation with Industry Capacity Data (August 16, 2000). FEDS Working Paper No. 2001-06. Available at SSRN: https://ssrn.com/abstract=260572 or http://dx.doi.org/10.2139/ssrn.260572

Plutarchos Sakellaris (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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