What inventory behavior tells us about business cycles

Article, Preprint OPEN
Mark Bils; James A. Kahn;
  • Journal: American Economic Review, volume 90, issue 3 June, pages 458-481
  • Identifiers: doi: 10.1257/aer.90.3.458
  • Subject: Inventories ; Business cycles | Inventories ; Business cycles ; Production (Economic theory)
    • jel: jel:E32 | jel:E3 | jel:E22

Manufacturers' finished goods inventories move less than shipments over the business cycle. We argue that this requires marginal cost to be more procyclical than is conventionally measured. We construct, for six manufacturing industries, alternative measures of marginal... View more
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