Development of Estimates of Emergency Operating Capacity for 4-Digit SIC Manufacturing Industries

Is There a Declining Trend in Capacity Utilization in the US Economy? A Technical Note

“…Finally, from a theoretical point of view, the presence a deterministic trend or structural breaks in the effective rate of capacity utilization is not sufficient evidence to accept or reject any particular model, nor to claim that utilization should be exogenous or endogenous in the 20 Only mentioned in a few articles (Shapiro 1996;Morin and Stevens 2004;Bansak, Morin and Starr 2007;Shapiro and Gorodnichenko 2011) and briefly analysed in Doyle (2000) and Petri (2003Petri ( , 2004. See Belzer et al (1991Belzer et al ( , 1993 for estimations. long-run 21 ; to do this, the reasons behind this long-term declining trend should be analysed and these will be subject to further analysis.…”