Credit conditions and the cyclical behavior of inventories a case study of the 1981-82 recession by A. K. Kashyap

Cover of: Credit conditions and the cyclical behavior of inventories | A. K. Kashyap

Published by National Bureau of Economic Research in Cambridge, MA .

Written in English

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Subjects:

  • Inventories -- United States -- Mathematical models.,
  • Credit -- United States.,
  • Recessions -- United States.

Edition Notes

Book details

StatementAnil K. Kashyap, Owen A. Lamont, Jeremy C. Stein.
SeriesNBER working paper series -- working paper no. 4211, Working paper series (National Bureau of Economic Research) -- working paper no. 4211.
ContributionsLamont, Owen A., Stein, Jeremy C., National Bureau of Economic Research.
The Physical Object
Pagination31, [13] p. :
Number of Pages31
ID Numbers
Open LibraryOL22439355M

Download Credit conditions and the cyclical behavior of inventories

Get this from a library. Credit conditions and the cyclical behavior of inventories: a case study of the recession. [A K Kashyap; Owen A Lamont; Jeremy C. Abstract. This paper examines micro data on U. manufacturing firms' inventory behavior during different macroeconomic episodes.

Much of the analysis focuses on the – recession, which was apparently caused in large part by tight monetary by: Title: Credit conditions and the cyclical behavior of inventories.

Created Date: 4/6/ PM. Anil K Kashyap & Owen A. Lamont & Jeremy C. Stein, "Credit Conditions and the Cyclical Behavior of Inventories," The Quarterly Journal of Economics, Oxford University Press, vol.

(3), pages Credit Conditions and the Cyclical Behavior of Inventories: A Case Studyof the Recession Anil K. Kashyap, Owen A. Lamont, Jeremy C. Stein. NBER Working Paper No. Issued in November NBER Program(s):Monetary Economics, Corporate Finance.

This paper examines micro data on U.S. firms' inventories during different macroeconomic. Get this from a library. Credit conditions and the cyclical behavior of inventories: a case study of the recession. [A K Kashyap; Owen A Lamont; Jeremy C Stein; National Bureau of Economic Research.] -- This paper examines micro data on U.S.

firms' inventories during different macroeconomic episodes. Much of the analysis focuses on the recession, a recession that was. Kashyap, Anil K. and Lamont, Owen A. and Stein, Jeremy C., Credit Conditions and the Cyclical Behavior of Inventories: A Case Studyof the Recession Cited by: Anil K.

Kashyap & Owen A. Lamont & Jeremy C. Stein, "Credit conditions and the cyclical behavior of inventories," Working Paper Series, Macroeconomic IssuesFederal Reserve Bank of Chicago. Kashyap, Anil K, Owen A Lamont, and Jeremy C Stein.

“Credit Conditions and the Cyclical Behavior of Inventories.” Quarterly Journal of Economics (Aug): Cited by: conditions, which we characterize using –rm cash ⁄ows and Tobin™s Q. The rest of this paper is organized as follows. In Section I, we describe our data sources, the methodology used to construct cyclical measures, and our procedure to condition on –rm size.

In Section II, we document the cyclical behavior of debt and equity using. The Cyclical Behavior of Optimal Bank Capital Article in Journal of Banking & Finance 28(6) June with 65 Reads How we measure 'reads'Author: Arturo Estrella.

Yield Spreads as Alternative Risk Factors for Size and Book-to-Market. Jaehoon Hahn (a1) and Hangyong Lee (a2) If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account.

“ Cited by: In Section II, we document the cyclical behavior of debt and equity using cyclical components constructed using the HP-filter, which is the most common way in the macroeconomics literature to study cyclicality.

In addition to debt and equity, we also look at internal finance and real firm variables, such as investment, inventories, and employment. This article investigates the cyclical behavior of the degree of plant utilization, inventories, order book level, and confidence climate index data (taken from Italian Business tendency surveys).

Global Credit Conditions: April Rising Credit Pressures Amid Deeper Recession, Uncertain Recovery Path Government measures to stem the spread of coronavirus have escalated in the past three weeks amid a tripling of confirmed cases globally, to more than million.

These measures, together with business and consumer behavioral changes, are resulting in wider and deeper economic effects. The Cyclical Behavior of Prices and Costs Julio J. Rotemberg, Michael Woodford. NBER Working Paper No. Issued in January NBER Program(s):Economic Fluctuations and Growth Because inputs are scarce, marginal cost should be an increasing function of output.

This paper investigates the cyclicality of research and development (R&D) activities during the Great Recession period by incorporating the role of credit constraints, using the Great Recession period as a natural case study. Recession period is a good setting in which to identify cyclicality and eliminate endogeneity issues that have been discussed in the by: 1.

Introduction. Credit is highly pro-cyclical: not much new credit is issued in recessions. A large theoretical literature—including Bernanke and Gertler (), Holmström and Tirole (), Kiyotaki and Moore (), and Diamond and Rajan ()—suggests that credit supply is important in explaining the evolution of the business cycle.

However, it is challenging to establish this Cited by: Kashyap, Anil K., Owen A. Lamont and Jeremy C. Stein, (): Credit Conditions and the Cyclical Behavior of Inventories: A Case Study of the –82 Recession, NBER working paper series n.

Cited by: 2. Book Review of Japanese Monetary Policy edited by Kenneth J. Singleton, Journal of International Economics, Augustvol. 37(1/2), pp. "Credit Conditions and the Cyclical Behavior of Inventories," with Jeremy Stein and Owen Lamont, Quarterly Journal.

Liquidity Constraints and the Cyclical Behavior of Markups During business-cycle expansions, wages appear to rise relative to output prices.' This fact is easy to square with real-busi- ness-cycle models which are based on the assumption that labor is more productive during expansions.

The Role of Inventories In the Business Cycle hanges in the stock of firms’ inventories are an important component of the business cycle. In fact, discussion about the timing of a recovery following economic recessions often focuses on inventories. Aubhik Khan surveys.

Inventory Theory and Consumer Behavior [Blinder, Alan S.] on *FREE* shipping on qualifying offers. Inventory Theory and Consumer BehaviorAuthor: Alan S. Blinder. Credit Cycle: A credit cycle describes the phases of access to credit by borrowers.

Credit cycles first go through periods in which funds are relatively easy to borrow; these periods are. Common stocks and business cycles: A practical analysis of the basic causes and patterns of cyclical behavior in economic series [Smith, Edgar Lawrence] on *FREE* shipping on qualifying offers.

Common stocks and business cycles: A practical analysis of the basic causes and patterns of cyclical behavior in economic seriesAuthor: Edgar Lawrence Smith. Cambridge Core - Economic Theory - Monetary Policy Transmission in the Euro Area - edited by Ignazio Angeloni This book has been cited by the following publications.

Bagliano, F. and A. Sembenelli (), The cyclical behavior of inventories: European cross-country evidence from the early s recession, mimeo. Credit Conditions and the Cyclical Behavior of Inventories: A Case Studyof the Recession NBER Working Papers, National Bureau of Economic Research, Inc View citations (2) Monetary Policy and Credit Conditions: Evidence From the Composition of External Finance.

Money, Bank Credit, and Economic Cycles book. Read 23 reviews from the world's largest community for readers. Can the market fully manage the money and b /5. Economic conditions refer to the state of the economy in a country or region. They change over time in line with the economic and business cycles, as an economy goes through expansion and.

Asset returns, discount rate changes and market efficiency. Bad beta, good beta. Common risk factors in the returns on stocks and bonds. Credit conditions and the cyclical behavior of inventories.

Determinants of the Federal funds rate: Author: Alexandros Kontonikas and Alexandros Kostakis. Business Cycle Development (U.S. Department of tighter financial constraints may also affect input purchases or the financing of an adequate level of finished goods inventories.

For all these reasons, the output and investment of credit-constrained firms will be more strongly affected by the action of the monetary authorities, and the.

and the cyclical behavior of inventory investment. 2 West () explicitly uses inventory behavior to de-compose the sources of cyclical fluctuations into cost and demand shocks.

Martin S. Eichenbaum () introduces unobserved cost shocks that generate simultaneous expan-sions in production and inventory investment. Valerie A. cycle inventory: A method of keeping track of inventory by performing inventory counts constantly, or on a frequent and regular basis, instead of once per year or once per quarter.

A business using the cycle inventory method might count different items at different rates, based on the level of turnover or demand for that particular item.

Mian and Santos (), using data from the Shared National Credit program, document the cyclical behavior of credit line use and refinancing decisions. Sufi () argues that while lines of credit are a liquidity substitute for firms with high cash flow, low cash flow firms rely more on cash as credit lines covenants are tied to cash flow.

Inventories. INVENTORY BEHAVIORThomas M. Stanback, Jr. BIBLIOGRAPHY. INVENTORY CONTROL THEORYT. Whitin. BIBLIOGRAPHY. INVENTORY BEHAVIOR. Inventories account for a relatively small portion of a nation’s wealth and long term capital formation: they constituted only 8 per cent of U.S.

tangible assets in and 6 per cent of tangible asset accumulation from to Related to cyclical: Cyclical unemployment, Cyclical Stocks cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is.

Here, we briefly review the behavior of output, final sales and inventory investment, as well as the inventory-to-sales ratio, over the postwar business cycle.

Table 1 summarizes the cyclical behavior of GDP, final sales, changes in private nonfarm inventories and the inventory-to-sales ratio in quarterly postwar U.S.

data. B) Inventories are sold for cash. C) Common stock is sold and the money is invested in marketable securities. D) Inventories are sold on a short-term credit basis.

documents that the model can match key aspects of US business cycles and in particular the cyclical behavior of inventories.

Fourth, the paper documents the importance of goods market frictions when the model is consistent with the cyclical behavior of inventories.

These contributions are discussed in more detail in the remainder of this by: 4. Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System.

This electronic document was created through a comprehensive digitization process which included identifying the best. The index exhibits some cyclical behavior, with productivity falling off at the end of most expansions.

But labor productivity measures are most useful if one is interested in explaining the factors that contribute to the long-term economic growth.IT, Inventories and the Business Cycle John D.

Stiver∗ This Draft: September Abstract Recent years have witnessed an explosion in the power of computer processing. The primary gain to computerization is the ability to manipulate large volumes of digital infor-mation very rapidly.

This paper focuses on the increased ability of.rather than fundamental to the cyclical behavior of the economy. to changing credit conditions than are plant and equipment outlays. stand at a higher level than inventories themselves, in terms of book value.

Thus, financially strong businesses could obtain large.

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