This is further complicated in a short run analysis incorporating multiple outputs and multiple fixed inputs where the relevant concept is the minimum of ray average cost. In real life, most firms are multi-output, multi-input in nature which makes estimation of capacity utilization and capacity output challenging if a cost based measure is desired. In an economics context, understanding where firms are producing on their average cost curve provides information about whether capacity utilization is greater than, less than or equal to unity. Ultimately, the crux of the capacity question is about resources not being used to their fullest extent. This is true whether capacity is considered from a cost accounting framework, an engineering standpoint, or an economics orientation. Measures of capacity utilization and capacity output are important metrics for evaluating firm performance. The analysis allows us to suggest some differentiated policy indications for fostering capacity utilisation in Tunisia. The estimation results reveal that the perception of political instability as an obstacle to the current operations of the establishment significantly affects capacity utilisation. We also find that political connections are negatively associated with the firm's capacity utilisation. Our findings show that the capacity utilisation is negatively related to the firm's experience in export, and positively associated with the firm size.
Besides the firms' characteristics, we highlight the role of institutions by considering the presence of informal competition and corruption that limit the firms' incentives or ability to maximise the utilisation of capacity. A number of test procedures and estimation methods are used to assess the adequacy of the main alternative regression models dealing with the fractional response variables. We employ the fractional regression models that ensure predictions within the unit interval. The capacity utilisation indicator is created from the firm's output produced as a proportion of the maximum output when utilising all the available resources. This paper studies the capacity utilisation rates of Tunisian firms using the database collected by the World Bank Enterprise Surveys in 2020. Results of the research are important in assessing the possibilities for sustainable agricultural growth and development in the European Union as the CU levels may vary for a certain depending on the inclusion of the environmental pressures in the model. The inclusion of the energy-related GHG emission in the model generally reduced the performance gaps among the countries considered. At the other end of spectrum, the underdeveloped economies often showed lower values thereof. Italy, Germany and France show the highest levels of the agricultural capacity utilization. The results indicate that the multiple output-oriented CU measures considered in the study yield often conflicting results. The case of European Union agricultural sector is analysed. This paper proposes a novel approach that integrates weak disposability technology with observation -specific abatement factors with input- and output-orientated capacity utilization measures in the short and long run. These questions are important in the context of the agricultural sector that needs to ensure food security and sustainability.
However, the environmental constraints should be considered when taking the production decisions.
Capacity utilization (CU) may show the potential for production growth under improved availability of the (variable and fixed) inputs.
0 kommentar(er)
