It is shown how, using data at the firm level, it may be possible to test for the existence of excess capacity as a strategic weapon to protect market share against competitors and potential entrants. If excess capacity has been found, it is also possible to test the extent of the threat, for...

The objective of this paper is to adjust a traditional total factor productivity (TFP) measure for the direct effect of environmental regulation on material and capital input. For this purpose we consider the fact that part of material input and pollution abatement capital have not been used to...