BPEA | 1976 No. 2

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

Alan J. Auerbach and
Alan Auerbach Headshot
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
Martin S. Feldstein NBER and Harvard University
Discussants: Michael C. Lovell and Robert E. Hall
Robert Hall Headshot
Robert E. Hall Robert and Carole McNeil Joint Hoover Senior Fellow and Professor of Economics - Stanford University

1976, No. 2

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.