Using Electricity Data to Measure Capital Utilization

In this paper we analyse variations in capital operating hours. This is an important factor in understanding productivity but has attracted little attention (compared, for instance, to working hours for labour), presumably because of deficient data and the inherent difficulty of measurement. Earlier studies have usually estimated operating hours based on working hours and the incidence of shift work. In this paper we contrast this approach with direct measures and a new method based on the demand for electric power (the use of electricity per hour). We also compare operating hours between industries and countries and briefly analyse their effect on total productivity