科研之友
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摘要
We develop a structural model to estimate firm-specific capacity utilization (CU). Firm's productivity heterogeneity can be controlled in this framework. We demonstrate that the lowest point of short-run average total cost curve is the most suitable definition of potential output. The method is then tested by firm-level data including 15 Chinese heavy industries during 1998-2008. Intuitive findings provide strong evidence for the reliability and robustness of our estimation framework: CU keeps rising during the sample period, while slowing down after 2004; there are substantial differences in CU across industries, regions and ownerships; CU is strongly pro-cyclical; firm investment and government intervention deteriorates the problem of excess capacity.
