Inventory Behavior in Durable-Goods Manufacturing: The Target-Adjustment Model

Alan J. Auerbach and

Alan J. Auerbach Robert D. Burch Professor of Economics and Law - Economics Department, UC-Berkeley, Director - Robert D. Burch Center for Tax Policy and Public Finance

Martin S. Feldstein

MSF

Martin S. Feldstein NBER and Harvard University

Discussants: Michael C. Lovell and

MCL

Michael C. Lovell

Robert E. Hall

Robert E. Hall Robert and Carole McNeil Joint Hoover Senior Fellow and Professor of Economics - Stanford University

THE RECENT problems of inflation and of a seemingly permanent high rate
of unemploymenth ave caused a virtual neglect of research on cyclical
fluctuations in demand. Yet even a cursory review of the past twenty years
uncovers a familiar pattern of repeated expansion and contraction of industrial
production with concomitant changes in employment, capacity
utilization, profits, and the like.