In this paper we estimate the rate of capital utilization as well as the productive capacity of the Greek
Industry, at the branch level for the period 1963-1983. Our method estimates the rare of capital utilization
making use of the maximum deviation of the average productivity of capital from its linear trend. Then
capital utilization rates are used for the estimation of the productive capacity of the branches of Greek
industry. We use potential and real output to estimate Cobb-Douglas production functions and find that
the results of the potential output regression show a significant improvement over those of the real output
regression which produces mainly negative or insignificant coefficients. We conclude that our method
produces estimates of potential output that improve the over all performance of production functions and
therefore it should be used in empirical studies of the Greek Industry.
(EN)
Πανεπιστήμιο Πειραιώς
