Interactions between the Seasonal and Business Cycles in Production and Inventories

Stephen Cecchetti, Anil Kashyap and David Wilcox

American Economic Review, 1997, vol. 87, issue 5, 884-92

Abstract: This paper shows that, in several U.S. manufacturing industries, the seasonal variability of production and inventories varied with the state of the business cycle. The authors present a simple model which implies that, if firms reduce the seasonal variability of their production as the economy strengthens and they either hold constant or increase the stock of inventories they bring into the high-production seasons of the year, then they must be facing upward-sloping and convex marginal cost curves. The authors conclude that firms in a number of industries face upward-sloping and convex marginal-production-cost curves. Copyright 1997 by American Economic Association.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://links.jstor.org/sici?sici=0002-8282%2819971 ... O%3B2-Y&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Interactions between the seasonal and business cycles in production and inventories (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:87:y:1997:i:5:p:884-92

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().