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Inventory investment and production in Europe during the "Great Recession": Is there a pattern?

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  • Abrahamsen, Yngve
  • Hartwig, Jochen

Abstract

The paper examines the nexus between inventory investment and the change in aggregate production during the "Great Recession" of 2008/09 for 29 European countries. A fairly uniform pattern emerges. Inventory investment is positively correlated with changes in production and follows the latter with a time-lag of two to three quarters. Very few countries (Austria, Greece, Spain and Switzerland) diverge from the typical pattern. This might hint to problems with respect to data quality.

Suggested Citation

  • Abrahamsen, Yngve & Hartwig, Jochen, 2011. "Inventory investment and production in Europe during the "Great Recession": Is there a pattern?," International Journal of Production Economics, Elsevier, vol. 132(2), pages 174-177, August.
    • Handle: RePEc:eee:proeco:v:132:y:2011:i:2:p:174-177
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    References listed on IDEAS

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