Following the study on the measurement of capacity utilization of manufacturing industries in Indonesia (Tjahjono, Husman, and Sianipar (2005)), this paper estimates the level of NAICU, Non-Accelerating Inflation rate of Capacity Utilization. According to this concept, NAICU is the level of capacity utilization consistent with stable inflation. If the level of capacity utilization exceeds the level of NAICU, then there will be pressure on inflation to accelerate. On the contrary, there won»t be acceleration on inflation if the level of capacity utilization below the level of NAICU. Using the threshold method based on Hansen (1999), the empirical result shows that dual cost capacity utilization of manufacturing industries are generally below the level of NAICU, which is 80%.Keyword: Capacity utilization, inflation, threshold regression, panel.JEL Classification: D24, E31, C12, C33
Tjahjono, Endy Dwi; Husman, Jardine; and Sianipar, Desthy
"PENGUKURAN NAICU PADA SEKTOR INDUSTRI PENGOLAHAN BERDASARKAN DUAL COST CAPACITY UTILIZATION,"
Bulletin of Monetary Economics and Banking: Vol. 9:
4, Article 1.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol9/iss4/1