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Oscillatory dynamics of investment and capacity utilization

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  • Greenblatt, R.E.

Abstract

Capitalist economic systems display a wide variety of oscillatory phenomena whose underlying causes are often not well understood. In this paper, I consider a very simple model of the reciprocal interaction between investment, capacity utilization, and their time derivatives. The model, which gives rise periodic oscillations, predicts qualitatively the phase relations between these variables. These predictions are observed to be consistent in a statistical sense with econometric data from the US economy.

Suggested Citation

  • Greenblatt, R.E., 2017. "Oscillatory dynamics of investment and capacity utilization," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 465(C), pages 486-493.
    • Handle: RePEc:eee:phsmap:v:465:y:2017:i:c:p:486-493
    DOI: 10.1016/j.physa.2016.08.025
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    References listed on IDEAS

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    Cited by:

    1. Wang, Xiaolei & Deng, Renxin & Yang, Yufang, 2023. "The spatiotemporal effect of factor price distortion on capacity utilization in China’s iron and steel industry," Resources Policy, Elsevier, vol. 86(PA).
    2. Wang, Delu & Wang, Yadong & Song, Xuefeng & Liu, Yun, 2018. "Coal overcapacity in China: Multiscale analysis and prediction," Energy Economics, Elsevier, vol. 70(C), pages 244-257.
    3. Li, Mengjie & Du, Weijian, 2022. "Opening the black box of capacity governance: Environmental regulation and capacity utilization of microcosmic firms in China," Economic Modelling, Elsevier, vol. 108(C).

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