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<title>Capacity utilization</title>

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<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Capacity utilization</span></span>

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</style><div role="note" class="hatnote navigation-not-searchable">See also: <a href="Output_gap" title="Output gap">Output gap</a></div>

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</p><p><b>Capacity utilization</b> or <b>capacity utilisation</b> is the extent to which a firm or nation employs its installed <a href="Productive_capacity" title="Productive capacity">productive capacity</a> (maximum output of a firm or nation). It is the relationship between <a href="Output_(economics)" title="Output (economics)">output</a> that <i>is</i> produced with the installed equipment, and the potential output which <i>could</i> be produced with it, if capacity was fully used.<sup id="cite_ref-Baumohl_2005_1-0" class="reference"><a href="#cite_note-Baumohl_2005-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The Formula is the actual output per period all over full capacity per period expressed as a percentage.

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<div class="mw-heading mw-heading2"><h2 id="Engineering_and_economic_measures">Engineering and economic measures</h2></div>

<p>One of the most used definitions of the "capacity utilization rate" is the ratio of actual output to the <a href="Potential_output" title="Potential output">potential output</a>. But potential output can be defined in at least two different ways.

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<div class="mw-heading mw-heading3"><h3 id="Engineering_definition">Engineering definition</h3></div>

<p>One is the "engineering" or "technical" definition, according to which potential output represents the maximum amount of output that can be produced in the short run with the existing stock of capital. Thus, a standard definition of capacity utilization is the (weighted) average of the ratios between the actual output of firms and the maximum that could be produced per unit of time, with existing plant and equipment (see Johanson 1968). Output could be measured in physical units or in market values, but normally it is measured in market values.

</p><p>However, as output increases and well before the absolute physical limit of production is reached, most firms might well experience an increase in the average cost of production—even if there is no change in the level of plant & equipment used. For example, higher average costs can arise because of the need to operate extra shifts, to undertake additional plant maintenance, and so on.

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<div class="mw-heading mw-heading3"><h3 id="Economic_definition">Economic definition</h3></div>

<p>An alternative approach, sometimes called the "economic" utilization rate, is, therefore, to measure the ratio of actual output to the level of output <i>beyond which the average cost of production begins to rise</i>. In this case, surveyed firms are asked by how much it would be practicable for them to raise production from existing plant and equipment, <i>without raising unit costs</i> (see Berndt & Morrison 1981). Typically, this measure will yield a rate around 10 percentage points higher than the "engineering" measure, but time series show the same movement over time.

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<div class="mw-heading mw-heading3"><h3 id="Measurement">Measurement</h3></div>

<p>In <a href="Economic_statistics" title="Economic statistics">economic statistics</a>, capacity utilization is normally surveyed for goods-producing industries at plant level. The results are presented as an average percentage rate by industry and economy-wide, where 100% denotes full capacity. This rate is also sometimes called the "operating rate". If the operating rate is high, this is called "full capacity", while if the operating rate is low, a situation of "excess capacity" or "surplus capacity" exists. The observed rates are often turned into indices. Capacity utilization is much more difficult to measure for service industries.

</p><p>There has been some debate among economists about the validity of statistical measures of capacity utilization, because much depends on the survey questions asked, and on the valuation principles used to measure output. Also, the efficiency of production may change over time, due to new technologies.

</p><p>For example, <a href="Michael_Perelman_(economist)" title="Michael Perelman (economist)">Michael Perelman</a> has argued in his 1989 book <i><a href="John_Maynard_Keynes" title="John Maynard Keynes">Keynes</a>, Investment Theory and the Economic Slowdown: The Role of Replacement Investment and q-Ratios</i> that the US <a href="Federal_Reserve_Board" class="mw-redirect" title="Federal Reserve Board">Federal Reserve Board</a> measure is just not very revealing. Prior to the early 1980s, he argues, American business carried a great deal of extra capacity. At that time, running close to 80% would indicate that a plant was approaching capacity restraints. Since that time, however, firms scrapped much of their most inefficient capacity. As a result, a modern 77% capacity utilization now would be equivalent to a historical level of 70%.

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<div class="mw-heading mw-heading2"><h2 id="Economic_significance">Economic significance</h2></div>

<p>If market demand grows, capacity utilization will rise. If <a href="Supply_and_demand" title="Supply and demand">demand</a> weakens, capacity utilization will slacken.<sup id="cite_ref-Baumohl_2005_1-1" class="reference"><a href="#cite_note-Baumohl_2005-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> Economists and bankers often watch capacity utilization indicators for signs of inflation pressures.

</p><p>It is often believed that when the utilization rate rises above somewhere between 82% and 85%, price inflation will increase. Excess capacity means that insufficient <a href="Demand" title="Demand">demand</a> exists to warrant expansion of output.

</p><p>All else constant, the lower capacity utilization falls (relative to the trend capacity utilization rate), the better the <a href="Bond_market" title="Bond market">bond market</a> likes it. Bondholders view strong capacity utilization (above the trend rate) as a leading indicator of higher inflation. Higher inflation—or the expectation of higher inflation—decreases bond prices, often prompting a higher yield to compensate for the higher expected rate of inflation.

</p><p>Implicitly, the capacity utilization rate is also an indicator of how efficiently the <a href="Factors_of_production" title="Factors of production">factors of production</a> are being used. Much statistical and anecdotal evidence shows that many industries in the developed capitalist economies suffer from <i>chronic</i> excess capacity. Critics of market <a href="Capitalism" title="Capitalism">capitalism</a>, therefore, argue the system is not as efficient as it may seem, since at least 1/5 more output could be produced and sold, if buying power was better distributed. However, a level of utilization somewhat below the maximum typically prevails, regardless of economic conditions.

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<div class="mw-heading mw-heading3"><h3 id="Modern_business_cycle_theory">Modern business cycle theory</h3></div>

<p>The notion of capacity utilization was introduced into modern <a href="Business_cycle" title="Business cycle">business cycle</a> theory by Greenwood, Hercowitz, and Huffman (1988). They illustrated how capacity utilization is important for getting business cycle correlations in economic models to match the data when there are shocks to <a href="Investment_spending" class="mw-redirect" title="Investment spending">investment spending</a>.

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<div class="mw-heading mw-heading2"><h2 id="Output_gap_percentage_formula">Output gap percentage formula</h2></div>

<p>As a derivative indicator, the "<a href="Output_gap" title="Output gap">output gap</a> percentage" (%OG) can be measured as the gap between actual output (AO) and potential output (PO) <i>divided</i> by potential output and <i>multiplied</i> by 100%:

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<div class="mw-heading mw-heading2"><h2 id="FRB_and_ISM_utilization_indexes">FRB and ISM utilization indexes</h2></div>

<p>In the survey of plant capacity used by the US <a href="Federal_Reserve_Board" class="mw-redirect" title="Federal Reserve Board">Federal Reserve Board</a> for the FRB capacity utilization index, firms are asked about "the maximum level of production that this establishment could reasonably expect to attain under normal and realistic operating conditions, fully utilizing the machinery and equipment in place."

</p><p>By contrast, the <a href="Institute_for_Supply_Management" title="Institute for Supply Management">Institute for Supply Management</a> (ISM) index asks respondents to measure their current output relative to "normal capacity", and this yields a utilization rate, which is between 4 and 10 percentage points higher than the FRB measure. Again, the time series show more or less the same historical movement.

</p><p>See <a href="Board_of_Governors_of_the_Federal_Reserve_System" class="mw-redirect" title="Board of Governors of the Federal Reserve System">Board of Governors of the Federal Reserve System</a>: Industrial Production and Capacity Utilization.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup>

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<p>The average economy-wide capacity utilization rate in the US since 1967 was about 81.6%, according to the Federal Reserve measure. The figure for Europe is not much different, for Japan being only slightly higher.

</p><p>The average utilization rate of installed productive capacity in industry, in some major areas of the world, was estimated in 2003/2004 to be as follows (rounded figures):

</p>

<div class="mw-heading mw-heading3"><h3 id="Average_utilization_rate">Average utilization rate</h3></div>

<ul><li>United States 79.5% (April 2008 — Federal Reserve measure)</li>

<li>Japan 83–86% (Bank of Japan)</li>

<li>European Union 82% (Bank of Spain estimate)</li>

<li>Australia 80% (National Bank estimate)</li>

<li>Brazil 60–80% (various sources)</li>

<li>India 70% (Hindu business line)</li>

<li>China perhaps 60% (various sources)</li>

<li>Turkey 79.8% (September 2008 — <a href="Turkish_Statistical_Institute" title="Turkish Statistical Institute">Turkish Statistical Institute</a>)<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup></li>

<li>Canada 87% (Statistics Canada)</li></ul>

<div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2></div>

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</style><cite id="CITEREFBaumohl2005" class="citation book cs1">Baumohl, Bernard (2005). <a rel="nofollow" class="external text" href="https://books.google.com/books?id=DT2zAAAAIAAJ"><i>The Secrets of Economic Indicators: Hidden Clues to Future Economic Trends and Investment Opportunities</i></a>. Wharton School Publishing – University of California. pp. <span class="nowrap">137–</span>140. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>9780131455016</bdi><span class="reference-accessdate">. Retrieved <span class="nowrap">9 January</span> 2023</span>.</cite></span>

</li>

<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.federalreserve.gov/releases/g17/current/">"The Fed – Industrial Production and Capacity Utilization – G.17"</a>. Federal Reserve<span class="reference-accessdate">. Retrieved <span class="nowrap">14 April</span> 2018</span>.</cite></span>

</li>

<li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=2051">"Turkish Statistical Institute"</a>. Turkstat.gov.tr. 9 April 2009<span class="reference-accessdate">. Retrieved <span class="nowrap">27 September</span> 2013</span>.</cite></span>

</li>

</ol></div></div>

<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

<ul><li>E. Berndt & J. Morrison, "Capacity utilization measures: Underlying Economic Theory and an Alternative Approach", American Economic Review, 71, 1981, pp. 48–52</li>

<li>I. Johanson, Production functions and the concept of capacity", Collection Economie et Mathematique et Econometrie, 2, 1968, pp. 46–72</li>

<li><a href="Michael_Perelman_(economist)" title="Michael Perelman (economist)">Michael Perelman</a>, <i>Keynes, Investment Theory and the Economic Slowdown</i></li>

<li><a href="Susan_Strange" title="Susan Strange">Susan Strange</a> and Roger Tooze, <i>The International Politics of Surplus Capacity: Competition for Market Shares in the World Recession</i> (London: Allen & Unwin, 1981).</li>

<li><a href="James_Crotty_(economist)" title="James Crotty (economist)">James Crotty</a>, "Why there is chronic excess capacity – The Market Failures Issue", in: <i>Challenge</i>, Nov–Dec 2002 <a rel="nofollow" class="external autonumber" href="http://www.findarticles.com/p/articles/mi_m1093/is_6_45/ai_95629325">[1]</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20080412041138/http://findarticles.com/p/articles/mi_m1093/is_6_45/ai_95629325">Archived</a> 12 April 2008 at the <a href="Wayback_Machine" title="Wayback Machine">Wayback Machine</a></li>

<li>Jeremy Greenwood, <a href="Zvi_Hercowitz" title="Zvi Hercowitz">Zvi Hercowitz</a>, and Gregory W. Huffman, "Investment, Capacity Utilization and the Real Business Cycle," <i>American Economic Review</i>, 1988.</li>

<li>Thomas G. Rawski, "The Political Economy of China's Declining Growth", University of Pittsburgh. <a rel="nofollow" class="external autonumber" href="https://web.archive.org/web/20060108092613/http://www.pitt.edu/~tgrawski/paper99/rawski-melbourne.htm">[2]</a></li>

<li><a href="Anwar_Shaikh_(Economist)" class="mw-redirect" title="Anwar Shaikh (Economist)">Anwar Shaikh</a> and Jamee Moudud, <i>Measuring Capacity Utilization in OECD Countries: A Cointegration Method</i>(2004), Working Paper No. 415, The Jerome Levy Economics Institute of Bard College. <a rel="nofollow" class="external autonumber" href="https://web.archive.org/web/20060315003307/http://homepage.newschool.edu/~AShaikh/measuring%20capacity.pdf">[3]</a></li>

<li>Annys Shin, "Economy Strains Under Weight of Unsold Items", <i>Washington Post</i>, 17 February 2009, A01.</li></ul>

<div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2></div>

<ul><li><a rel="nofollow" class="external text" href="https://bhs.econ.census.gov/bhs/pcu/index.html">US survey of plant capacity utilisation</a></li>

<li><a rel="nofollow" class="external text" href="https://www.federalreserve.gov/releases/g17/current/ipg1.gif">Capacity utilisation of US industry</a></li>

<li><a rel="nofollow" class="external text" href="https://www.federalreserve.gov/releases/G17/">Federal Reserve Statistics</a></li>

<li><a rel="nofollow" class="external text" href="http://www.fao.org/DOCREP/003/X2250E/x2250e07.htm">FAO discussion of concepts and measures</a></li>

<li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20060315003307/http://homepage.newschool.edu/~AShaikh/measuring%20capacity.pdf">Measuring capacity utilization in OECD countries</a></li>

<li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20060913092707/http://cds.edu/download_files/334.pdf">Economic Reforms and Industrial Performance: An analysis of Capacity Utilization in Indian Manufacturing</a></li></ul>

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</style><div id="Economics681" style="font-size:114%;margin:0 4em"><a href="Economics" title="Economics">Economics</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Economics#Theoretical_research" title="Economics">Theoretical</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Microeconomics" title="Microeconomics">Microeconomics</a>

<ul><li><a href="Decision_theory" title="Decision theory">Decision theory</a></li>

<li><a href="Price_theory" class="mw-redirect" title="Price theory">Price theory</a></li>

<li><a href="Game_theory" title="Game theory">Game theory</a></li>

<li><a href="Contract_theory" title="Contract theory">Contract theory</a></li>

<li><a href="Mechanism_design" title="Mechanism design">Mechanism design</a></li></ul></li>

<li><a href="Macroeconomics" title="Macroeconomics">Macroeconomics</a></li>

<li><a href="Mathematical_economics" title="Mathematical economics">Mathematical economics</a></li>

<li><a href="Complexity_economics" title="Complexity economics">Complexity economics</a></li>

<li><a href="Computational_economics" title="Computational economics">Computational economics</a>

<ul><li><a href="Agent-based_computational_economics" title="Agent-based computational economics">Agent-based computational economics</a></li></ul></li>

<li><a href="Behavioral_economics" title="Behavioral economics">Behavioral economics</a></li>

<li><a href="Pluralism_in_economics" title="Pluralism in economics">Pluralism in economics</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Economics#Empirical_research" title="Economics">Empirical</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Econometrics" title="Econometrics">Econometrics</a>

<ul><li><a href="Economic_statistics" title="Economic statistics">Economic statistics</a></li></ul></li>

<li><a href="Experimental_economics" title="Experimental economics">Experimental economics</a></li>

<li><a href="Economic_history" title="Economic history">Economic history</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Applied_economics" title="Applied economics">Applied</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Agricultural_economics" title="Agricultural economics">Agriculture</a></li>

<li><a href="Business_economics" title="Business economics">Business</a></li>

<li><a href="Cultural_economics" title="Cultural economics">Cultural</a></li>

<li><a href="Demographic_economics" title="Demographic economics">Demographic</a></li>

<li><a href="Development_economics" title="Development economics">Development</a></li>

<li><a href="Ecological_economics" title="Ecological economics">Ecological</a></li>

<li><a href="Education_economics" title="Education economics">Education</a></li>

<li><a href="Engineering_economics" title="Engineering economics">Engineering</a></li>

<li><a href="Environmental_economics" title="Environmental economics">Environmental</a></li>

<li><a href="Evolutionary_economics" title="Evolutionary economics">Evolutionary</a></li>

<li><a href="Financial_economics" title="Financial economics">Financial</a></li>

<li><a href="Economic_geography" title="Economic geography">Geographic</a></li>

<li><a href="Happiness_economics" title="Happiness economics">Happiness</a></li>

<li><a href="Health_economics" title="Health economics">Health</a></li>

<li><a href="Economic_history" title="Economic history">History</a></li>

<li><a href="Information_economics" title="Information economics">Information</a></li>

<li><a href="Infrastructure_and_economics" title="Infrastructure and economics">Infrastructure</a></li>

<li><a href="Institutional_economics" title="Institutional economics">Institutions</a></li>

<li><a href="Labour_economics" title="Labour economics">Labour</a></li>

<li><a href="Managerial_economics" title="Managerial economics">Management</a></li>

<li><a href="Non-monetary_economy" title="Non-monetary economy">Non-monetary</a></li>

<li><a href="Organizational_economics" title="Organizational economics">Organization</a></li>

<li><a href="Economics_of_participation" title="Economics of participation">Participation</a></li>

<li><a href="Personnel_economics" title="Personnel economics">Personnel</a></li>

<li><a href="Economic_planning" title="Economic planning">Planning</a></li>

<li><a href="Economic_policy" title="Economic policy">Policy</a></li>

<li><a href="Public_economics" title="Public economics">Public sector</a></li>

<li><a href="Public_choice" title="Public choice">Public choice</a></li>

<li><a href="Social_choice" class="mw-redirect" title="Social choice">Social choice</a></li>

<li><a href="Regional_economics" title="Regional economics">Regional</a></li>

<li><a href="Regulatory_economics" title="Regulatory economics">Regulatory</a></li>

<li><a href="Natural_resource_economics" title="Natural resource economics">Resources</a></li>

<li><a href="Rural_economics" title="Rural economics">Rural</a></li>

<li><a href="Service_economy" title="Service economy">Service</a></li>

<li><a href="Transport_economics" title="Transport economics">Transport</a></li>

<li><a href="Urban_economics" title="Urban economics">Urban</a></li>

<li><a href="Welfare_economics" title="Welfare economics">Welfare</a></li></ul></div></div>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><div style="display: inline-block; line-height: 1.2em; padding: .1em 0;"><a href="Schools_of_economic_thought" title="Schools of economic thought">Schools</a><br>(<a href="History_of_economic_thought" title="History of economic thought">history</a>)<br></div></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Attention_economy" title="Attention economy">Attention</a></li>

<li><a href="Mainstream_economics" title="Mainstream economics">Mainstream</a></li>

<li><a href="Heterodox_economics" title="Heterodox economics">Heterodox</a></li>

<li><a href="American_School_(economics)" title="American School (economics)">American (National)</a></li>

<li><a href="Ancient_economic_thought" title="Ancient economic thought">Ancient thought</a></li>

<li><a href="Austrian_School" class="mw-redirect" title="Austrian School">Austrian</a></li>

<li><a href="Behavioral_economics" title="Behavioral economics">Behavioral</a></li>

<li><a href="Buddhist_economics" title="Buddhist economics">Buddhist</a></li>

<li><a href="Chartalism" title="Chartalism">Chartalism</a>

<ul><li><a href="Modern_monetary_theory" title="Modern monetary theory">Modern monetary theory</a></li></ul></li>

<li><a href="Chicago_school_of_economics" title="Chicago school of economics">Chicago</a></li>

<li><a href="Classical_economics" title="Classical economics">Classical</a></li>

<li><a href="Critique_of_political_economy" title="Critique of political economy">Critique of political economy</a></li>

<li><a href="Economic_democracy" title="Economic democracy">Democratic</a></li>

<li><a href="Disequilibrium_macroeconomics" title="Disequilibrium macroeconomics">Disequilibrium</a></li>

<li><a href="Ecological_economics" title="Ecological economics">Ecological</a></li>

<li><a href="Evolutionary_economics" title="Evolutionary economics">Evolutionary</a></li>

<li><a href="Feminist_economics" title="Feminist economics">Feminist</a></li>

<li><a href="Freiwirtschaft" title="Freiwirtschaft">Freiwirtschaft</a></li>

<li><a href="Georgism" title="Georgism">Georgism</a></li>

<li><a href="Happiness_economics" title="Happiness economics">Happiness</a></li>

<li><a href="Historical_school_of_economics" title="Historical school of economics">Historical</a></li>

<li><a href="Humanistic_economics" title="Humanistic economics">Humanistic</a></li>

<li><a href="Institutional_economics" title="Institutional economics">Institutional</a></li>

<li><a href="Keynesian_economics" title="Keynesian economics">Keynesian</a>

<ul><li><a href="Neo-Keynesian_economics" class="mw-redirect" title="Neo-Keynesian economics">Neo-</a> (<a href="Neoclassical_synthesis" title="Neoclassical synthesis">neoclassical–Keynesian synthesis</a>)</li>

<ul><li><a href="Monetary_circuit_theory" title="Monetary circuit theory">Circuitism</a></li></ul></li></ul></li>

<li><a href="Malthusianism" title="Malthusianism">Malthusianism</a></li>

<li><a href="Marginalism" title="Marginalism">Marginalism</a></li>

<li><a href="Marxian_economics" title="Marxian economics">Marxian</a>

<li><a href="Mercantilism" title="Mercantilism">Mercantilism</a></li>

<li><a href="Mixed_economy" title="Mixed economy">Mixed</a></li>

<li><a href="Mutualism_(economic_theory)" title="Mutualism (economic theory)">Mutualism</a></li>

<li><a href="Neoclassical_economics" title="Neoclassical economics">Neoclassical</a>

<ul><li><a href="Lausanne_School" title="Lausanne School">Lausanne</a></li></ul></li>

<li><a href="New_classical_macroeconomics" title="New classical macroeconomics">New classical</a>

<ul><li><a href="Real_business-cycle_theory" title="Real business-cycle theory">Real business-cycle theory</a></li></ul></li>

<li><a href="New_institutional_economics" title="New institutional economics">New institutional</a></li>

<li><a href="Physiocracy" title="Physiocracy">Physiocracy</a></li>

<li><a href="Socialist_economics" title="Socialist economics">Socialist</a></li>

<li><a href="Stockholm_School_(economics)" title="Stockholm School (economics)">Stockholm</a></li>

<li><a href="Supply-side_economics" title="Supply-side economics">Supply-side</a></li>

<li><a href="Thermoeconomics" title="Thermoeconomics">Thermo</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><div style="display: inline-block; line-height: 1.2em; padding: .1em 0;"><a href="Economist" title="Economist">Economists</a><br></div></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Bernard_de_Mandeville" class="mw-redirect" title="Bernard de Mandeville">de Mandeville</a></li>

<li><a href="Fran%C3%A7ois_Quesnay" title="François Quesnay">Quesnay</a></li>

<li><a href="Adam_Smith" title="Adam Smith">Smith</a></li>

<li><a href="Thomas_Robert_Malthus" title="Thomas Robert Malthus">Malthus</a></li>

<li><a href="David_Ricardo" title="David Ricardo">Ricardo</a></li>

<li><a href="Johann_Heinrich_von_Th%C3%BCnen" title="Johann Heinrich von Thünen">von Thünen</a></li>

<li><a href="Fr%C3%A9d%C3%A9ric_Bastiat" title="Frédéric Bastiat">Bastiat</a></li>

<li><a href="Antoine_Augustin_Cournot" title="Antoine Augustin Cournot">Cournot</a></li>

<li><a href="Hermann_Heinrich_Gossen" title="Hermann Heinrich Gossen">Gossen</a></li>

<li><a href="L%C3%A9on_Walras" title="Léon Walras">Walras</a></li>

<li><a href="William_Stanley_Jevons" title="William Stanley Jevons">Jevons</a></li>

<li><a href="Henry_George" title="Henry George">George</a></li>

<li><a href="Carl_Menger" title="Carl Menger">Menger</a></li>

<li><a href="Alfred_Marshall" title="Alfred Marshall">Marshall</a></li>

<li><a href="Francis_Ysidro_Edgeworth" title="Francis Ysidro Edgeworth">Edgeworth</a></li>

<li><a href="John_Bates_Clark" title="John Bates Clark">Clark</a></li>

<li><a href="Vilfredo_Pareto" title="Vilfredo Pareto">Pareto</a></li>

<li><a href="Eugen_von_B%C3%B6hm-Bawerk" title="Eugen von Böhm-Bawerk">von Böhm-Bawerk</a></li>

<li><a href="Friedrich_von_Wieser" title="Friedrich von Wieser">von Wieser</a></li>

<li><a href="Thorstein_Veblen" title="Thorstein Veblen">Veblen</a></li>

<li><a href="Silvio_Gesell" title="Silvio Gesell">Gesell</a></li>

<li><a href="Irving_Fisher" title="Irving Fisher">Fisher</a></li>

<li><a href="Arthur_Cecil_Pigou" title="Arthur Cecil Pigou">Pigou</a></li>

<li><a href="Eli_Heckscher" title="Eli Heckscher">Heckscher</a></li>

<li><a href="Ludwig_von_Mises" title="Ludwig von Mises">von Mises</a></li>

<li><a href="Joseph_Schumpeter" title="Joseph Schumpeter">Schumpeter</a></li>

<li><a href="John_Maynard_Keynes" title="John Maynard Keynes">Keynes</a></li>

<li><a href="Frank_Knight" title="Frank Knight">Knight</a></li>

<li><a href="Karl_Polanyi" title="Karl Polanyi">Polanyi</a></li>

<li><a href="Ragnar_Frisch" title="Ragnar Frisch">Frisch</a></li>

<li><a href="Piero_Sraffa" title="Piero Sraffa">Sraffa</a></li>

<li><a href="Gunnar_Myrdal" title="Gunnar Myrdal">Myrdal</a></li>

<li><a href="Friedrich_Hayek" title="Friedrich Hayek">Hayek</a></li>

<li><a href="Micha%C5%82_Kalecki" title="Michał Kalecki">Kalecki</a></li>

<li><a href="Wilhelm_R%C3%B6pke" title="Wilhelm Röpke">Röpke</a></li>

<li><a href="Simon_Kuznets" title="Simon Kuznets">Kuznets</a></li>

<li><a href="Jan_Tinbergen" title="Jan Tinbergen">Tinbergen</a></li>

<li><a href="Joan_Robinson" title="Joan Robinson">Robinson</a></li>

<li><a href="John_von_Neumann" title="John von Neumann">von Neumann</a></li>

<li><a href="John_Hicks" title="John Hicks">Hicks</a></li>

<li><a href="Oskar_R._Lange" title="Oskar R. Lange">Lange</a></li>

<li><a href="Wassily_Leontief" title="Wassily Leontief">Leontief</a></li>

<li><a href="John_Kenneth_Galbraith" title="John Kenneth Galbraith">Galbraith</a></li>

<li><a href="Tjalling_Koopmans" title="Tjalling Koopmans">Koopmans</a></li>

<li><a href="E._F._Schumacher" title="E. F. Schumacher">Schumacher</a></li>

<li><a href="Milton_Friedman" title="Milton Friedman">Friedman</a></li>

<li><a href="Paul_Samuelson" title="Paul Samuelson">Samuelson</a></li>

<li><a href="Herbert_A._Simon" title="Herbert A. Simon">Simon</a></li>

<li><a href="James_M._Buchanan" title="James M. Buchanan">Buchanan</a></li>

<li><a href="Kenneth_Arrow" title="Kenneth Arrow">Arrow</a></li>

<li><a href="William_Baumol" title="William Baumol">Baumol</a></li>

<li><a href="Robert_Solow" title="Robert Solow">Solow</a></li>

<li><a href="Murray_Rothbard" title="Murray Rothbard">Rothbard</a></li>

<li><a href="Alan_Greenspan" title="Alan Greenspan">Greenspan</a></li>

<li><a href="Thomas_Sowell" title="Thomas Sowell">Sowell</a></li>

<li><a href="Gary_Becker" title="Gary Becker">Becker</a></li>

<li><a href="Elinor_Ostrom" title="Elinor Ostrom">Ostrom</a></li>

<li><a href="Robert_Lucas_Jr." title="Robert Lucas Jr.">Lucas</a></li>

<li><a href="Joseph_Stiglitz" title="Joseph Stiglitz">Stiglitz</a></li>

<li><a href="Richard_Thaler" title="Richard Thaler">Thaler</a></li>

<li><a href="Hans-Hermann_Hoppe" title="Hans-Hermann Hoppe">Hoppe</a></li>

<li><a href="Paul_Krugman" title="Paul Krugman">Krugman</a></li>

<li><a href="Thomas_Piketty" title="Thomas Piketty">Piketty</a></li>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Lists</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Glossary_of_economics" title="Glossary of economics">Glossary</a></li>

<li><a href="List_of_economists" title="List of economists">Economists</a></li>

<li><a href="List_of_important_publications_in_economics" class="mw-redirect" title="List of important publications in economics">Publications</a> (<a href="List_of_economics_journals" title="List of economics journals">journals</a>)</li>

<li><a href="Schools_of_economic_thought" title="Schools of economic thought">Schools</a></li></ul>

</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>

<ul><li>Category</li>

<li><a href="Index_of_economics_articles" title="Index of economics articles">Index</a></li>

<li>Lists</li>

<li><a href="Outline_of_economics" title="Outline of economics">Outline</a></li>

<li><a href="List_of_important_publications_in_economics" class="mw-redirect" title="List of important publications in economics">Publications</a></li>

<li><a href="Portal%3ABusiness" title="Portal:Business">Business portal</a></li></ul>

</div></td></tr></tbody></table></div>

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