scholarly journals Is Capacity Utilization Variable in the Long Run? An Agent-Based Sectoral Approach to Modeling Hysteresis in the Normal Rate of Capacity Utilization

2020 ◽  
Author(s):  
Federico Bassi ◽  
Tom Bauermann ◽  
Dany Lang ◽  
Mark Setterfield
Keyword(s):  
Capacity Utilization ◽  
Normal Rate ◽  
Agent Based ◽  
Long Run ◽  
Sectoral Approach

Tolerable ranges of variation in the rate of capacity utilisation and corridor instability: a reply to Florian Botte

2019 ◽  
Author(s):  
Mark Setterfield
Keyword(s):  
Capacity Utilization ◽  
Normal Rate ◽  
Actual Rate ◽  
Capacity Utilisation ◽  
Long Run

AbstractThis reply to Botte (2019, Estimating normal rates of capacity utilization and their tolerable ranges: a comment on Mark Setterfield, Cambridge Journal of Economics, forthcoming) responds to criticisms of the methods used to estimate the normal rate of capacity utilisation and a tolerable interval of variation in the actual rate of capacity utilisation around the normal rate in Setterfield (2019a, Long-run variation in capacity utilization in the presence of a fixed normal rate, Cambridge Journal of Economics, vol. 43, no. 2, 443–63). It concludes with some further reflections on the concept of corridor instability.

scholarly journals Long-run variation in capacity utilization in the presence of a fixed normal rate

2018 ◽  
Vol 43 (2) ◽  
pp. 443-463 ◽  
Author(s):  
Mark Setterfield
Keyword(s):  
Capacity Utilization ◽  
Normal Rate ◽  
Long Run

scholarly journals The (Normal) Rate of Capacity Utilization at the Firm Level

2012 ◽  
Author(s):  
Michalis Nikiforos
Keyword(s):  
Capacity Utilization ◽  
Normal Rate ◽  
Firm Level

e-Supply Network

2011 ◽  
pp. 250-268
Author(s):  
Shima Mohebbi ◽  
Rasoul Shafaei ◽  
Namjae Cho
Keyword(s):  
Capacity Utilization ◽  
Coordination Mechanism ◽  
Global Network ◽  
Supply Network ◽  
Agent Based ◽  
Network Cost ◽  
Network Coordination ◽  
Supply Capacity ◽  
The Impact ◽  
Total Network

The automation of negotiation among buyer-supplier-supplier triad is an important policy in e-supply network coordination (e-SNC). In addition to the buyer-supplier coordination advantages, a further coordination among suppliers is also highly important in order to maximize the network supply capacity utilization especially when the suppliers are geographically decentralized. This chapter focuses on the impact of suppliers’ coordination in a network where the coordination among buyers and suppliers is in place. The proposed agent-based model is composed of two negotiator agents, one monitor agent, and one coordinator agent. The model begins with buyer-supplier negotiation and coordination mechanism adopted from the approach developed by Mohebbi and Shafaei (2010). Then, the suppliers’ coordination mechanism is developed to investigate the interaction among suppliers and evaluate the subsequent benefit obtained in the global network. The efficiency of the proposed approach is evaluated using a simulation model. The results demonstrate that in a network where the coordination among buyers and suppliers is in place, a further coordination among suppliers leads to the reduction of total network cost.

An Agent-Based Model to Forecast the Inflation Rate in the Eurozone

2017 ◽  
pp. 72-92
Author(s):  
Juan Luis Santos ◽  
Jagoda Anna Kaszowska ◽  
Tomás Mancha Navarro
Keyword(s):  
Financial Institutions ◽  
Inflation Rate ◽  
Phillips Curve ◽  
Supply And Demand ◽  
Single Agent ◽  
Market Equilibrium ◽  
Agent Based Model ◽  
Agent Based ◽  
Long Run ◽  
Inflation Rates

The aim of the agent-based model presented in this chapter is to explain the determinants of inflation and to forecast the inflation rate in the Eurozone for the next five years. The behaviors of agents and their expectations are interrelated and explained by macroeconomic models applied to heterogeneous agents of three classes: individuals, companies and financial institutions. In addition, the behavior of public sector and central bank is also modeled with a single agent of each kind. Once the quantitative easing policy is implemented, the quantitative theory of money expects higher inflation rates in the long run. Inflation should remain low taking into account the Phillips-Curve. Last, according to the Aggregated Supply and Demand as well as to the Money Market equilibrium, the behaviors modeled allow forecasting low inflation. However, an external shock, as it would be an increase in the price of important commodities, can alter the inflation rate to a great extent.

scholarly journals Some observations on endogeneity in the normal rate of capacity utilisation

2020 ◽  
Vol 8 (3) ◽  
pp. 385-406 ◽  
Author(s):  
Brett Fiebiger
Keyword(s):  
Manufacturing Sector ◽  
Aggregate Demand ◽  
Manufacturing Industries ◽  
Normal Rate ◽  
Capacity Utilisation ◽  
New Approach ◽  
Long Run ◽  
The Us ◽  
Normal Shift ◽  
Kaleckian Model

As is well known, the closure of the canonical Neo-Kaleckian model is an endogenous rate of capacity utilisation. To allay concerns of Harrodian instability one response has been to endogenise the normal rate to effective demand pressures. Recent contributions have stressed microfoundations for an adjustment in the normal rate towards the actual rate. The new approach focuses on shiftwork and redefines capacity utilisation as the average workweek of capital. This paper examines whether the new concept of capacity utilisation can provide a firmer basis for endogeneity in the normal rate. It argues that the assumption of variability in the normal shift system cannot be generalised across manufacturing industries, while the potential relevance for non-manufacturing industries is unknown. Another concern is that long-run trends in the average workweek of capital and aggregate demand do not coincide. The paper also finds that the long-run trend in the US Federal Reserve's index of capacity utilisation for the manufacturing sector is not flat as frequently claimed. Instead, there is a downward trend from the mid 1960s, which matches the slowdown in aggregate demand.

Hysteresis in the normal rate of capacity utilization: A behavioral explanation

2020 ◽  
Vol 71 (4) ◽  
pp. 898-919
Author(s):  
Mark Setterfield ◽  
Joana David Avritzer
Keyword(s):  
Capacity Utilization ◽  
Normal Rate

scholarly journals IS BUSINESS CYCLE ASYMMETRY INTRINSIC IN INDUSTRIALIZED ECONOMIES?

2019 ◽  
Vol 24 (6) ◽  
pp. 1403-1436 ◽  
Author(s):  
James Morley ◽  
Irina B. Panovska
Keyword(s):  
Business Cycle ◽  
Model Uncertainty ◽  
Phillips Curve ◽  
Capacity Utilization ◽  
Output Growth ◽  
Underlying Structure ◽  
Output Gap ◽  
Cycle Asymmetry ◽  
Long Run ◽  
Intrinsic Characteristic

We consider a model-averaged forecast-based estimate of the output gap to measure economic slack in 10 industrialized economies. Our measure takes changes in the long-run growth rate into account and, by addressing model uncertainty using equal weights on different forecast-based estimates, is robust to different assumptions about the underlying structure of the economy. For all 10 countries in the sample, we find that the estimated output gap has much larger negative movements during recessions than positive movements in expansions, suggesting business cycle asymmetry is an intrinsic characteristic of industrialized economies. Furthermore, the estimated output gap is always strongly negatively correlated with future output growth and unemployment and positively correlated with capacity utilization. It also implies a convex Phillips Curve in many cases. The model-averaged output gap is reliable in real time in the sense of being subject to relatively small revisions.

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