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Business cycle volatility and inventories behavior:new evidence for the Euro Area

Author

Listed:
  • Tatiana Cesaroni

    (MEF-Treasury Ministry of Economy)

  • Louis Maccini

    (John Hopkins University)

  • Marco Malgarini

    (ISAE - Institute for Studies and Economic Analyses)

Abstract

In recent years a number of studies have investigated stylised facts concerning the most important US macroeconomic time series(Stock and Watson, 2002; McConnell and Perez-Quiros, 2000; Blanchard and Simon, 2001; Arias, Hansen, and Ohanian, 2006); One of the main results of the analysis concerns a marked volatility reduction emerging from the data since the early eighties. In this respect, the aim of this paper is twofold. Firstly, it analyzes the Euro Area business cycle stylised facts in order to gain better understanding of the European economy as compared with that of the US. Secondly, it explores the technological innovation hypothesis as an explanation of the ‘Great Moderation’, focusing on the advances in inventory management techniques due to computerisation.

Suggested Citation

  • Tatiana Cesaroni & Louis Maccini & Marco Malgarini, 2009. "Business cycle volatility and inventories behavior:new evidence for the Euro Area," ISAE Working Papers 108, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  • Handle: RePEc:isa:wpaper:108
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Cesaroni, Tatiana, 2015. "Procyclicality of credit rating systems: How to manage it," Journal of Economics and Business, Elsevier, vol. 82(C), pages 62-83.
    2. Luciana Crosilla & Marco Malgarini, 2011. "Behavioural models for manufacturing firms: analysing survey data," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2011(4), pages 139-163.
    3. Roberta De Santis & Tatiana Cesaroni, 2016. "Current Account ‘Core–Periphery Dualism’ in the EMU," The World Economy, Wiley Blackwell, vol. 39(10), pages 1514-1538, October.
    4. repec:agr:journl:v:10(587):y:2013:i:10(587):p:97-110 is not listed on IDEAS
    5. Malgarini, Marco, 2012. "Industrial production and Confidence after the crisis: what's going on?," MPRA Paper 53813, University Library of Munich, Germany.
    6. Willy A Hoffmaister & Jens R Clausen, 2010. "Cyclical Behavior of Inventories and Growth Projections Recent Evidence From Europe and the United States," IMF Working Papers 10/212, International Monetary Fund.
    7. Petar Sorić & Mirjana Čižmešija & Marina Matošec, 2020. "EU Consumer Confidence and the New Modesty Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 899-921, December.
    8. Tatiana Cesaroni & Stefano Iezzi, 2017. "The Predictive Content of Business Survey Indicators: Evidence from SIGE," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 13(1), pages 75-104, May.
    9. Alina Carare & Ashoka Mody, 2012. "Spillovers of Domestic Shocks: Will They Counteract the ‘Great Moderation’?," International Finance, Wiley Blackwell, vol. 15(1), pages 69-97, April.
    10. G. Bruno & L. Crosilla & P. Margani, 2019. "Inspecting the Relationship Between Business Confidence and Industrial Production: Evidence on Italian Survey Data," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 15(1), pages 1-24, April.
    11. Obermaier, Robert, 2012. "German inventory to sales ratios 1971–2005—An empirical analysis of business practice," International Journal of Production Economics, Elsevier, vol. 135(2), pages 964-976.
    12. Cesaroni, Tatiana & De Santis, Roberta, 2015. "Current Account ‘Core-Periphery Dualism’ in the EMU," CEPS Papers 10317, Centre for European Policy Studies.

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    More about this item

    Keywords

    Business cycle stylized facts; European survey data; Inventory behaviour.;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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