Seasonal Cycles, Business Cycles, and the Comovement of Inventory Investment and Output
Abstract
The importance of inventory investment in the business cycle is well-known. Its role in the seasonal cycle is less well known. The authors examine the variation of inventory investment and its comovement with output over the seasonal and business cycles. They measure the deterministic and stochastic seasonal components of monthly inventory data and find seasonality contributes about 75 percent of the total variance, similar to the proportion found in GDP. The authors find that inventory investment and output exhibit high correlation, with similar magnitudes, at seasonal and business cycle frequencies. These findings are consistent with the idea that seasonal cycles and business cycles are propagated through similar mechanisms and suggest that inventory investment may play as important a role in the seasonal cycle as it does in the business cycle.Download Info
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Bibliographic Info
Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking.
Volume (Year): 30 (1998)
Issue (Month): 3 (August)
Pages: 331-46
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Matas-Mir, Antonio & Osborn, Denise R., 2004.
"Does seasonality change over the business cycle? An investigation using monthly industrial production series,"
European Economic Review,
Elsevier, vol. 48(6), pages 1309-1332, December.
- Matas-Mir, Antoni & Denise R Osborn, 2002. "Does Seasonality Change over the Business Cycle? An Investigation using Monthly Industrial Production Series," Royal Economic Society Annual Conference 2002 139, Royal Economic Society.
- A Matas-Mir & D R Osborn, 2001. "Does Seasonality Change Over the Business Cycle? An Investigation Using Monthly Industrial Production Series," The School of Economics Discussion Paper Series 0110, Economics, The University of Manchester.
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"Holiday Price Rigidity and Cost of Price Adjustment,"
Working Papers
2009-03, Department of Economics, Bar-Ilan University.
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- Daniel Levy & Georg Müller & Haipeng (Allan) Chen & Mark Bergen & Shantanu Dutta, 2008. "Holiday Price Rigidity and Cost of Price Adjustment," Emory Economics 0802, Department of Economics, Emory University (Atlanta).
- Daniel Levy & Georg Muller & Shantanu Dutta & Mark Bergen, 2004. "Holiday Price Rigidity and Cost of Price Adjustment," Macroeconomics 0402019, EconWPA, revised 10 Jun 2005.
- Daniel Levy & Georg Müller & Shantanu Dutta & Mark Bergen, 2002. "Holiday Price Rigidity and Cost of Price Adjustment," Working Papers 2002-03, Department of Economics, Bar-Ilan University.
- Levy, Daniel & Müller, Georg & Chen, Haipeng (Allan) & Bergen, Mark & Dutta, Shantanu, 2008. "Holiday Price Rigidity and Cost of Price Adjustment," MPRA Paper 13095, University Library of Munich, Germany.
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"The effects of institutional and technological change and business cycle fluctuations on seasonal patterns in quarterly industrial production series,"
Working Paper Series in Economics and Finance
0429, Stockholm School of Economics, revised 16 May 2002.
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- D R Osborn & A Matas-Mir, 2003. "The Extent of Seasonal/Business Cycle Interactions in European Industrial Production," Centre for Growth and Business Cycle Research Discussion Paper Series 38, Economics, The Univeristy of Manchester.
- Levy, Daniel & Dezhbakhsh, Hashem, 2003.
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- Daniel Levy & Hashem Dezhbakhsh, 2004. "International Evidence on Output Fluctuation and Shock Persistence," Macroeconomics 0402016, EconWPA.
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- Daniel Levy & Hashem Dezhbakhsh, 2002.
"On the Typical Spectral Shape of an Economic Variable,"
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2002-16, Department of Economics, Bar-Ilan University.
- Daniel Levy & Hashem Dezhbakhsh, 2003. "On the typical spectral shape of an economic variable," Applied Economics Letters, Taylor and Francis Journals, vol. 10(7), pages 417-423.
- Daniel Levy & Hashem Dezhbakhsh, 2004. "On the Typical Spectral Shape of an Economic Variable," Macroeconomics 0402017, EconWPA.
- Guido de Blasio & Federico Mini, 2001. "Seasonality and Capacity: an Application to Italy," Temi di discussione (Economic working papers) 403, Bank of Italy, Economic Research and International Relations Area.
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