Seasonal production smoothing
AbstractEmpirical tests of the production-smoothing hypothesis have yielded mixed results. In this paper, Donald Allen looks for, and finds evidence of, seasonal production smoothing in 15 out of 25 manufacturing series and 8 out of 10 retail series, using detrended seasonally unadjusted data. The equivalent test using seasonally adjusted data were negative for all 35 series. The results suggest that seasonally adjusted data obscure short-term production-smoothing.
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Bibliographic InfoPaper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 1999-004.
Date of creation: 1999
Date of revision:
Publication status: Published in Federal Reserve Bank of St. Louis Review, September/October 1999, 81(5), pp. 21-40
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