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The 1989 Change in the Definition of Capacity: A Plant-Level Perspective

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  • Maura P Doyle

Abstract

The Survey of Plant Capacity (SPC) is the primary source of data used to construct the Federal Reserve's manufacturing utilization rates. A major restructuring of the SPC in 1989 presents a potential obstacle to constructing measures of utilization that are consistent over time. The object of this study is to take advantage of plant-level data that is available at the Census Bureau's O±ce of the Chief Economist to thoroughly reexamine the link between the historical and current measures of capacity. The preponderance of evidence in this study suggests that preferred utilization is consistent with \full" utilization and, therefore, supports the underlying Federal Reserve methodology for estimating capacity utilization.

Suggested Citation

  • Maura P Doyle, 2000. "The 1989 Change in the Definition of Capacity: A Plant-Level Perspective," Working Papers 00-09, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:00-09
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    File URL: https://www2.census.gov/ces/wp/2000/CES-WP-00-09.pdf
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    References listed on IDEAS

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    1. Winston, Gordon C, 1977. "Capacity: An Integrated Micro and Macro Analysis," American Economic Review, American Economic Association, vol. 67(1), pages 418-422, February.
    2. Lawrence R. Klein & Virginia Long, 1973. "Capacity Utilization: Concept, Measurement, and Recent Estimates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(3), pages 743-764.
    3. Carol Corrado & Joe Mattey, 1997. "Capacity Utilization," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 151-167, Winter.
    4. Robert H Mcguckin & Peter Zadrozny, 1988. "Long-Run Expectations And Capacity," Working Papers 88-1, Center for Economic Studies, U.S. Census Bureau.
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