Accession Number : AD0432970

Title :   CAPACITY CONCEPTS AND MEASUREMENTS,

Corporate Author : GEORGE WASHINGTON UNIV WASHINGTON D C

Personal Author(s) : Segel,Frank W.

Report Date : 18 MAR 1964

Pagination or Media Count : 164

Abstract : The essence of this paper is an examination of the properties of different capacity concepts and measurements and their use in investment models. The principal characteristic to be examined intensively is their usefulness in measuring the extent of capital utilization. In particular, the problem is to examine the behavior of the Evsey D. Domar exponential growth model for the manufacturing sector of the economy in the short run period from 1948 to 1959. Capacity definitions and concepts are discussed from the viewpoint of several empirical investigations and of different econometric techniques. The statistical portion of this paper pivots on two sets of fundamental calculations made from the basic data provided in Daniel B. Creamer's monograph, Capital Expansion and Capacity in Postwar Manufacturing. Assuming the methodology used by Creamer in his monograph provides valid measurements of the percentage of capacity utilized, the ability of the Domar growth model to provide similar measurements will be analyzed. This analysis will determine the nature of the conclusions of the paper with respect to the Domar hypothesis that given an equilibrium rate of growth which remains constant, the maintenance of full employment requires investment to grow at a constant compound interest rate. (Author)

Descriptors :   (*ECONOMICS, MEASUREMENT), INDUSTRIES, GROWTH(PHYSIOLOGY), TEST METHODS, BANKING, TABLES(DATA), MATHEMATICAL ANALYSIS, LOGISTICS

Distribution Statement : APPROVED FOR PUBLIC RELEASE