The Cyclical Behavior of Inventories: European Cross-Country Evidence from the Early 1990s Recession
Universita di Torino Working Paper No. 01-53
30 Pages Posted: 17 Jul 2001
Date Written: June 2001
Abstract
This paper employs data for a panel of firms from France, Italy and the UK to study the effect of the recession of the early '90s on inventory investment, controlling for cyclical fluctuations at the firm level. The results clearly show some common patterns across countries, pointing to the relevance of financial factors in propagating initial recessionary shocks. However, Italian firms, especially if "small and young", seem more likely to suffer from a reduction in the value of collateralizable assets possibly originated by restrictive policy actions.
Keywords: inventory investment, financial accelerator, recessions, panel data
JEL Classification: C23, E22
Suggested Citation: Suggested Citation
Do you want regular updates from SSRN on Twitter?
Recommended Papers
-
By Jacques Mairesse, Bronwyn H. Hall, ...
-
Firm Level Investment and R&D in France and the United States: A Comparison
By Benoit Mulkay, Bronwyn H. Hall, ...
-
Firm Investment and Monetary Policy Transmission in the Euro Area
By Jean-bernard Chatelain, Andrea Generale, ...
-
Firm Investment and Monetary Policy Transmission in the Euro Area
By Jean-bernard Chatelain, Andrea Generale, ...
-
Business Fixed Investment: Evidence of a Financial Accelerator in Europe
-
Business Fixed Investment: Evidence of a Financial Accelerator in Europe
-
Does Monetary Policy Have Asymmetric Effects? A Look at the Investment Decisions of Italian Firms
By Eugenio Gaiotti and Andrea Generale
-
Investment and Monetary Policy in the Euro Area
By Benoit Mojon, Frank Smets, ...