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A comparison of the behavior of Japanese and US inventories

✍ Scribed by Kenneth D. West

Publisher: Elsevier Science
Year: 1992
Tongue: English
Weight: 710 KB
Volume: 26
Category: Article
ISSN: 0925-5273
DOI: 10.1016/0925-5273(92)90053-a

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✦ Synopsis

This paper compares the cyclicaf and secular behavior of Japanese and US inventories at the aggregate and sectoral level, t 967-l 987. While, as is well known, US inventories are sharply procyclical, Japanese inventories are onfy mildly procyclical. In neither country do inventory and sales move together in the long run, in the sense that the two series do not seem to be cointegrated. In Japan, but not in the US, there is a secular decline in the inventory-sales ratio.

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