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Optimal Capital Utilisation in British Manufacturing Industry

  • Derek L. Bosworth
  • Peter J. Dawkins
Conference paper

Abstract

The study of capital utilisation has occupied an increasingly important place in the literature on both the production function and factor demand models, which focus on the relationship between output (itself a per period flow) and the flows of various factor services consumed in the production process. In such models the associated flows are specified for a given period, but the time at which the factor services are consumed in the production process within the period are not considered to be important. To ignore variations in the rate of input flows is to ignore a central technical characteristic of the production process. It may be conceivable that the firm can modify the number of employees required to man a particular machine, at least within certain limits, but it seems unlikely that the vast majority of machines can be left to work unmanned for any substantial period of time. In contrast with the production and employment function literature, the timing of input flows has been a central concern of the capital utilisation literature, but the theories have tended to be simplistic and have not been incorporated into production and employment models.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1983

Authors and Affiliations

  • Derek L. Bosworth
  • Peter J. Dawkins

There are no affiliations available

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