This paper shows that the behaviour of inventories is not symmetrical and that their modelling requires more than just a linear regression. Models of inventory behaviour are described and symmetric and non-symmetric-error-correction models are formulated which divide the changes in production into positive and negative components. Deepness and steepness tests are calculated for inventories of the disaggregate manufacturing sectors in the UK for evidence of the asymmetry. The resultsof the symmetric and the asymmetric error-correction models are presented and compared by a series of tests. Step response functions of the non-symmetric error-correction models are reported to show the full extent of this asymmetry.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number
99192.
Find related papers by JEL classification: C5 - Mathematical and Quantitative Methods - - Econometric Modeling
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Did you know? You can include your works in the database easily by uploading them on the Munich Personal RePEc Archive (MPRA) if you do not have access to an institutional RePEc archive.