 Stabilized business cycles with increased output volatility at high frequenciesTakeshi Kimura and Kyosuke Shiotani Journal of the Japanese and International Economies, 2009, vol. 23, issue 1, 1-19 Abstract: In Japan, like many other industrialized countries, output volatility declined dramatically in the 1980s. In order to investigate the cause of this decline, we decompose the variance of output growth by frequency. Our important findings are: (1) The total variance of output growth decreased, which resulted from a reduction in the volatility at business-cycle frequencies; (2) At business-cycle frequencies, the variance of production fell by a larger percentage than did the variance of sales; and (3) In stark contrast, at high frequencies, the variance of production increased, while the variance of sales decreased. These features of production at different frequencies cannot be explained by changes in the sales process and cost-shock process. Instead, improved business practices--such as the adoption of the just-in-time technique--played a direct role in stabilizing the business cycles, while increasing output volatility at high frequencies. J. Japanese Int. Economies 23 (1) (2009) 1-19. Keywords: Output; volatility; Inventories; Business; cycle (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:23:y:2009:i:1:p:1-19 Access Statistics for this article Journal of the Japanese and International Economies is currently edited by Takeo Hoshi More articles in Journal of the Japanese and International Economies from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.