Abstract
This paper investigates the movement of manufacturing inventories and production over the business cycle to arrive at an asymmetric structural equilibrium-correction model. Initially cross-correlation coefficients and deepness and steepness tests for skewness are utilized to present descriptive statistics of the time series. Cointegration analysis is performed on each disaggregate inventory by stage of production (finished goods, work in progress and raw materials) with a set of explantory variables. Restricted cointegration vectors are added to the symmetric and non-symmetric specifications of the structural equilibrium-correction model. These are compared by parameter constancy tests and one-step ahead forecasts.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.