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Output Fluctuations at the Plant Level

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  • Timothy F. Bresnahan
  • Valerie A. Ramey

Abstract

This paper studies weekly output fluctuations from 1972 to 1983 at fifty final assembly plants in the U.S. automobile industry. The study makes use of a new data set that contains detailed information on plant operations. The main findings of the paper are: (1) Even at the simplest fabrication and assembly plant, there are a variety of margins on which production quantities are adjusted; (2) The production adjustment margins appear to have very different dynamic characteristics; and (3) The analysis of plant level data can lead to conclusions that are dramatically different from those reached using aggregated data, even though the data are driven by industry-wide shocks.

Suggested Citation

  • Timothy F. Bresnahan & Valerie A. Ramey, 1992. "Output Fluctuations at the Plant Level," NBER Working Papers 4105, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:4105
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    References listed on IDEAS

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    3. Blanchard, Olivier J, 1983. "The Production and Inventory Behavior of the American Automobile Industry," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 365-400, June.
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