Abstract
The degree of capacity utilization affects the measurement of total productivity. This paper uses establishment occupancy level as a proxy for establishment capacity utilization. Accordingly, the authors decompose total factor productivity (TFP) growth into technical progress, changes in allocative efficiency, changes in occupancy levels, changes in technical efficiency and scale effects. The empirical results show that the occupancy level component offers the most important contribution to TFP. Policy implications are offered in light of the results.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
