The Endogeneity-to-Demand of the National Emergency Utilization Rate

Levy Economics Institute, Working Papers No. 989

23 Pages Posted: 30 Jun 2021

See all articles by Michalis Nikiforos

Michalis Nikiforos

Bard College - The Levy Economics Institute

Multiple version iconThere are 3 versions of this paper

Date Written: June 17, 2021

Abstract

The paper provides an empirical discussion of the national emergency utilization rate (NEUR), which is based on a “national emergency” definition of potential output and is published by the US Census Bureau. Over the peak-to-peak period 1989–2019, the NEUR decreased by 14.2 percent. The paper examines the trajectory of potential determinants of capacity utilization over the same period as specified in the related theory, namely: capital intensity, relative prices of labor and capital, shift differentials, rhythmic variations in demand, industry concentration, and aggregate demand. It shows that most of them have moved in a direction that would lead to an increase in utilization. The main factor that can explain the decrease in the NEUR is aggregate demand, while the increase in industry concentration might have also played a small role.

Keywords: Accumulation; Growth; Distribution; Utilization

JEL Classification: B22; O4; D3; D2

Suggested Citation

Nikiforos, Michalis, The Endogeneity-to-Demand of the National Emergency Utilization Rate (June 17, 2021). Levy Economics Institute, Working Papers No. 989, Available at SSRN: https://ssrn.com/abstract=3869230 or http://dx.doi.org/10.2139/ssrn.3869230

Michalis Nikiforos (Contact Author)

Bard College - The Levy Economics Institute ( email )

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