Tolerable Ranges of Variation in the Rate of Capacity Utilization and Corridor Instability: A Reply to Florian Botte

Abstract

This reply to Botte (2019) responds to criticisms of the methods used to estimate the normal rate of capacity utilization and a tolerable interval of variation in the actual rate of capacity utilization around the normal rate in Setterfield (2019a). It concludes with some further reflections on the concept of corridor instability.