Last updated 09/07/24: Online ordering is currently unavailable due to technical issues. We apologise for any delays responding to customers while we resolve this. For further updates please visit our website: https://www.cambridge.org/news-and-insights/technical-incident
We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
Published online by Cambridge University Press: 17 August 2016
This paper constructs and estimates a vintage model of production for manufacturing in the U.K. including the investment and scrapping decisions. The model uses a generalised Leontief flexible functional form, which allows for the testing of ex-ante and ex-post substitution. The data does not allow the rejection of some substitutability at both ex-ante and ex-post stages. The model also allows for an examination of price responsiveness of input-output coefficients. Finally the model is used to construct a capacity utilisation index.
Cet article modélise et estime un modèle de production à générations de capital pour l’industrie manufacturière britannique, en intégrant les décisions d’investissement et d’amortissement. Le modèle utilise une forme fonctionnelle flexible généralisée du modèle de Léontief, qui permet une estimation à la fois de la substitution ex-ante et la substitution ex-post. Les données ne permettent pas de rejeter la substituabilité à des étapes antérieures et postérieures à l’installation de l’équipement. Le modèle permet aussi une analyse de la sensibilité des prix aux coefficients d’input-output. Finalement, le modèle admet la construction d’un indice d’utilisation des capacités.
The work reported in this paper is supported by a grant from the U.K. Department of Energy, for which we are very grateful. The comments and advice of Penelope Rowlatt and Richard Wester by throughout the project have been very valuable. We are also grateful to our colleagues John Aldrich, Grayham Mizon and Ray O’Brien for their advice. We alone are responsible for the views expressed here.
