This paper models capacity utilisation as a cyclical variable that reflects both the value of precautionary capacity and the desire to hold strategic excess capacity. Business unit data from the Profit Impact on Marketing Strategy (PIMS) database of large, predominantly US, companies are used. Separ...
Recent declines in electric demand growth rates have left many electric utilities with excess generating capacity. In many cases, state utility regulators have responded by disallowing the inclusion of the costs of the excess in rates charged to consumers. Mister ColtonColton, Roger D...
of money, M. Any increase in the money supply feeds directly into an increase in demand for goods and services (AGGREGATE DEMAND). It follows that if the money supply (M), and hence aggregate demand, increaseover timefaster than the supply capacity of the economy (T), the result will ...
The proportion of the capital stock actually employed in equilibrium growth is- But since the capital stock is growing (at a rate asymptotically equal to n3) the absolute amount of excess capacity is growing, too. This appearance of redundancy independent of any price-wage move- ments is a ...
We prove the existence of a symmetric subgame perfect equilibrium at which firms are in excess capacity compared with the capacity they would choose in the Cournot certainty equivalent game. This is a preview of subscription content, log in via an institution to check access. Similar content ...
Subordinate the other parts of system to the constraint.Let's talk about the third one, because it's the least obvious and therefore most interesting one. Looking at the picture again, we have a lot of excess capacity in component assembly. We do a little investigation, and discover that ...
The stock of capital can be changing each period even though it is fixed at each instant of time. A procedure which relates stock supply functions to excess flow-demands and a time variable is ‘mandatory if one wishes to conduct a systematic inquiry into problems of “capital accumulation”’...
By definition, all non-constraint equipment has some degree of excess capacity. This excess capacity is a virtue, as it enables smoother operation of the constraint. The manufacturing process is purposely unbalanced: ItemDescription UpstreamUpstream equipment has excess capacity that ensures that the co...
1 First, the scope of our survey is broad. We examine capital budgeting, cost of capital, and capital structure. This allows us to link responses across areas. For example, we investigate whether firms that consider financial flexibility to be a capital structure priority are also likely to ...
Handicap theory explains that exaggeratedly developed sexual traits become handicaps but serve as honest signals of quality. Because very weak signals are less likely to provide benefits than to simply incur costs, it is interesting to elucidate how sexu