The purpose of this paper is to treat scale economies, profit-maximizing markups, economic profitability, capacity … utilization and productivity growth within an integrated structural model, and to assess their interactions empirically using … annual two-digit U.S. manufacturing data. Attention is focused on error biases in measuring productivity using traditional …

We explore how changes in ownership and managerial control affect the productivity and profitability of producers … gains in capacity utilization that raised both their productivity and profitability levels, consistent with acquiring owner … century, we find a more nuanced picture than the straightforward "higher productivity buys lower productivity" story commonly …