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Some empirical evidence for production smoothing in the agribusiness sector

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  • Stephen E. Miller

    (Department of Agricultural Economics and Rural Sociology, Clemson University, Clemson, South Carolina)

Abstract

This article looks at the evidence as to whether agribusiness manufacturers use their inventories of finished products to smooth their production processes. The data lend support to the production smoothing hypothesis for the case of condensed and evaporated milk; however, that support is weakened when seasonally adjusted data are used in the analysis. There is no evidence of production smoothing in flour milling. This negative result can be explained by the production-to-order characteristics of the flour milling industry.

Suggested Citation

  • Stephen E. Miller, 1990. "Some empirical evidence for production smoothing in the agribusiness sector," Agribusiness, John Wiley & Sons, Ltd., vol. 6(1), pages 41-52.
    • Handle: RePEc:wly:agribz:v:6:y:1990:i:1:p:41-52
    DOI: 10.1002/1520-6297(199001)6:1<41::AID-AGR2720060105>3.0.CO;2-A
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    References listed on IDEAS

    as
    1. Alan S. Blinder, 1986. "Can the Production Smoothing Model of Inventory Behavior be Saved?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(3), pages 431-453.
    2. Ghali, Moheb A, 1987. "Seasonality, Aggregation and the Testing of the Production Smoothing Hypothesis," American Economic Review, American Economic Association, vol. 77(3), pages 464-469, June.
    3. Mark Lowry & Joseph Glauber & Mario Miranda & Peter Helmberger, 1987. "Pricing and Storage of Field Crops: A Quarterly Model Applied to Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 740-749.
    4. West, Kenneth D., 1983. "A note on the econometric use of constant dollar inventory series," Economics Letters, Elsevier, vol. 13(4), pages 337-341.
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