This paper examines the relationships between technology, capital spending, and capacity utilization. Recent technological changes have increased the flexibility of relationships between inputs and outputs in manufacturing, which may have eroded the predictive value of the utilization rate. This...

A review of the theoretical and empirical relationship between capacity utilization and inflation, employing a two-equation structural model that does not suffer from simultaneity bias and that appears to be stable over time.

This paper examines the relationship between capacity growth and the growth and composition of investment. Because capacity is an index of the maximum sustainable output of an industry, capacity growth is unlikely to be determined solely by the growth of an industry's fixed capital stock....

A look at the U.S. Census Bureau and the Federal Reserve Board indexes of capacity utilization, with an explanation of the indexes' construction, advantages, and shortcomings; conclusion of June 15 issue.