Measures of Excess Capacity
By Daniel Primont
ABSTRACT
In simple terms, a measure of excess capacity is a ratio of actual output to potential output. In somewhat less simple terms, excess capacity is measured by comparing a vector of actual outputs to a vector of potential outputs. However, both the construction and the interpretation of excess capacity measures depend on several factors such as 1) the definition of potential output, 2) the presence of technical inefficiency, 3) economic behavioral assumptions and 4) the market environment. Thus, a plethora of excess capacity measures can arise. This paper surveys a number of these resultant measures and assesses their applicability to fisheries economics.
 View Measuring Capacity: Overview and Definitional Issues Session
|
Instructions for authors
