Abstract
A well-established feature of the business cycle, which has been known for a long time, is the high correlation between output and the variation of inventories (for some recent evidence, see, e.g., Chanut and Laroque, 1979; Blinder, 1985). It is interesting to contrast the interpretations that the two main strands of macroeconomic theory give of this stylized fact.
I have benefited from the comments of Avinash Dixit, Sanford Grossman, Peter Hartley, Martin Hellwig, David Romer, Bernard Salanié, Joseph Stiglitz and Jean-Luc Vila.
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© 1989 George R. Feiwel
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Laroque, G. (1989). On Inventories and the Business Cycle. In: Feiwel, G.R. (eds) The Economics of Imperfect Competition and Employment. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08630-6_24
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DOI: https://doi.org/10.1007/978-1-349-08630-6_24
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-08632-0
Online ISBN: 978-1-349-08630-6
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