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Inventories and Business Cycles, with Special Reference to Manufacturer's Inventories

Authors
Disciplines
  • Agricultural Science
  • Economics

Abstract

Finished Goods Made from Agricultural Materials This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Inventories and Business Cycles, with Special Reference to Manufacturer's Inventories Volume Author/Editor: Moses Abramovitz Volume Publisher: NBER Volume ISBN: 0-870-14087-6 Volume URL: http://www.nber.org/books/abra50-1 Publication Date: 1950 Chapter Title: Finished Goods Made from Agricultural Materials Chapter Author: Moses Abramovitz Chapter URL: http://www.nber.org/chapters/c9135 Chapter pages in book: (p. 269 - 309) CHAPTER 12 Finished Goods Made from Agricultural Materials Finished goods made from nonfarm raw materials are a fairly homogeneous group. Stocks move inversely during business cycles of ordinary length because production, while sensitive to changes in demand, responds only after a certain interval and at a certain rate. The group of products now to be reviewedproducts fabri- cated from agricultural raw materialsdoes not present such a uniform picture. At bottom, the reason for their diverse behavior is that they approximate only loosely the group we wish to distin- guish, namely, products whose production cycles are influenced more largely by fluctuations in conditions of supply than by those in conditions of demand. However, since many fabricated farm products do, in fact, meet this specification while others do not for identifiable reasons, a review of the group will go far toward clari- fying the situation. i Conformity to Cycles in Business and Production The relation of manufacturers' stocks of finished goods made from agricultural raw materials to business cycles is diverse. Of the ten full cycle indexes in Table r' three have fairly substantial values with a negative sign, one indicates regular positive conform- ity; six indexes arc low, and of these, three are negative, one is positive, and two are zero. But even among the group that appar- ently responds inversely to changes

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