Order Backlogs and Production Smoothing

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 322)


Empirical examination of some aggregate manufacturing data suggests that order backlogs may help explain two puzzling facts: (1) the variability of production appears to be greater than that of demand, and (2) inventories appear to be drawn down when demand is low, built up when demand is high.


Unit Root Inventory Model Finished Good Impulse Response Function Demand Shock 
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Copyright information

© Springer-Verlag, New York, Inc. 1989

Authors and Affiliations

  1. 1.University of WisconsinUSA

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