Capacity Utilization in Swedish Industry
1994 (English)Report (Other academic)
The raw data from the Swedish capacity utilization survey is used to study the dynamics of the intra-sectoral distribution of plants. The fraction of plants with almost full capacity utilization decreases from 55% to 40% over a business cycle. This change is accompanied by an increase of the fraction of plants with moderately low utilization rates, leaving the fractions of plants with moderately high and very low rates essentially unchanged. The paper suggests a simple model with firm specific and common shocks, and a combination of fixed and rapidly increasing variable costs. The model is able to capture the main features of the data.
Place, publisher, year, edition, pages
Stockholm: IIES , 1994. , 20 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 572
IdentifiersURN: urn:nbn:se:su:diva-41896OAI: oai:DiVA.org:su-41896DiVA: diva2:342840