Sunday , November 24 2024
Home / Thomas Palley: Economics for Democratic and Open Societies / Rethinking capacity utilization choice: the role of surrogate inventory and entry deterrence

Rethinking capacity utilization choice: the role of surrogate inventory and entry deterrence

Summary:
This paper presents a macroeconomics-friendly Post Keynesian model of the firm describing both an inventory theoretic approach and an entry deterrence approach to choice of excess capacity. The model explains why firms may rationally choose to have excess capacity. It also shows the two approaches are complementary and reinforcing of each other. Analytically, the paper ...

Topics:
tom considers the following as important: , ,

This could be interesting, too:

Lars Pålsson Syll writes Klas Eklunds ‘Vår ekonomi’ — lärobok med stora brister

Lars Pålsson Syll writes Ekonomisk politik och finanspolitiska ramverk

Lars Pålsson Syll writes NAIRU — a harmful fairy tale

John Quiggin writes Trump’s dictatorship is a fait accompli

This paper presents a macroeconomics-friendly Post Keynesian model of the firm describing both an inventory theoretic approach and an entry deterrence approach to choice of excess capacity. The model explains why firms may rationally choose to have excess capacity. It also shows the two approaches are complementary and reinforcing of each other. Analytically, the paper […]
About tom

Leave a Reply

Your email address will not be published. Required fields are marked *