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Capital Utilization and Returns to Scale

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  • Burnside, C
  • Eichenbaum, M
  • Rebelo, S

Abstract

This paper studies the implications of procyclical capital utilization rates for inference regarding cyclical movements in labor productivity and the degree of returns to scale. We organize our investigation around five questions that we study using a measure of capital services based on electricity consumption.

Suggested Citation

  • Burnside, C & Eichenbaum, M & Rebelo, S, 1995. "Capital Utilization and Returns to Scale," RCER Working Papers 402, University of Rochester - Center for Economic Research (RCER).
    • Handle: RePEc:roc:rocher:402
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    More about this item

    Keywords

    BUSINESS CYCLES;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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