In the production function approach, an accurate output gap assessment requires a careful evaluation of the total factor productivity (TFP) cycle. We build a common cycle model that links TFP to capacity utilization and we show that, in almost all of the preenlargement EU countries, using information about capacity utilization reduces both the total estimation error and the revisions in real-ti...

We consider the interaction between an incumbent firm and a potential entrant, and examine how this interaction is affected by demand fluctuations. Our model gives rise to procyclical entry, prices, and price-cost margins, although the average price in the market can be countercyclical if the entrant is a first mover, and capacity utilization can be either proor countercyclical if the incumbent...

This paper presents a Kaleckian growth model in which (i) the rate of capacity utilization, the profit share, and the rate of employment are adjusted in the medium run, and (ii) the normal rate of capacity utilization and the expected rate of growth are adjusted in the long run. Both the Kalecki type and the Marglin-Bhaduri type investment functions are introduced. Using the model, we examine w...

OBJECTIVE To quantify the relationship between utilization of care among the uninsured and the structure of the local health care market and safety net. DATA SOURCES/STUDY SETTING Nationally representative data from the 1996 to 2000 waves of the Medical Expenditure Panel Survey (MEPS) linked to data from multiple secondary sources. STUDY DESIGN We separately analyze outpatient care utilizat...

OBJECTIVE To investigate the impact of national implementation of age restriction on fluoroquinolone prescription in children and adolescents. METHODS Data collected from the database of Health Insurance Review and Assessment Service in South Korea, a national health insurance system to analyze fluoroquinolone prescribing practice in children and adolescents younger than 18 years, between 200...

BACKGROUND The importance of creating and sustaining a strong culture of patient safety has been recognized as a critical component of safe medication use. This study aims to assess changes in attitudes toward patient safety culture and frequency of quality-related event (QRE) reporting after guided implementation of a continuous quality improvement (CQI) program in a panel of community pharmac...

We investigate the tradeoff between aircraft capacity utilization and on-time performance, a key measure of airline quality. Building on prior theory (Porter 1996, Schmenner and Swink 2004) and empirical work (Lapre and Scudder 2004) we expect that airlines that are close to their productivity or asset frontiers would face steeper tradeoffs between utilization and performance, than those that a...

In this paper, we embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine replacement in a general equilibrium model based on putty-clay technology. We show that the combination of log-normally distributed idiosyncratic productivity uncertainty and Leontief utilization choice yields an aggregate production function that is easily charact...

As policymakers debate adding a prescription drug benefit to Medicare, they must also seek ways to promote cost-effective use of drugs and minimize inappropriate prescribing. For more than a decade, all state Medicaid agencies and most private insurers have used computerized drug utilization review (DUR) programs to prevent or rectify potential prescribing errors. DUR can be retrospective, in w...