@article{d10cdac3c09647e6aace450e28700003,
title = "The stylized facts about the behavior of manufacturers' inventories and backorders over the business cycle: 1959-1980",
abstract = "Recent theoretical work has highlighted the role of inventories in propagating business cycles. This paper attempts to provide an empirical foundation for current and future research on the role inventories play in business cycles. The evidence presented here indicates that inventories and backorders are major variables in predicting output fluctuations. Further, the evidence is that disaggregating inventories by stage-of-fabrication is important in predicting output. In concert with previous findings, our results suggest that disaggregated inventories ought to be a component of models of the business cycle.",
author = "Patricia Reagan and Sheehan, \{Dennis P.\}",
note = "Funding Information: Our analysis explores two major hypotheses. The first is that inventories by stage-of-fabrication move together over the business cycle, t The question is whether anything is lost if inventories that have been aggregated across firms and industries are further aggregated across stages-of-fabrication? It has been *The comments of Charles Plosser and the efforts of a persistent referee have substantially improved this paper. An earlier version of this paper was presented at an NBER Conference on Macroeconon\textasciitilde{}c Fluctuations at which the discussants, Angelo Melino and Victor Zarnowitz, provided valuable comments. The support of the National Science Foundation and the Center for Research in Government Policy and Business, University of Rochester is gratefully acknowledged.",
year = "1985",
month = mar,
doi = "10.1016/0304-3932(85)90065-0",
language = "English (US)",
volume = "15",
pages = "217--246",
journal = "Journal of Monetary Economics",
issn = "0304-3932",
publisher = "Elsevier B.V.",
number = "2",
}