An Empirical Analysis of Backlog,Inventory, Production,and Price Adjustments: An Application of Recursive Systems of Log-Linear Models |
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| Authors: | B Ottenwaelter Q H Vuong |
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| Institution: | 1. Institut National de la Statistique et des Etudes Economiques (INSEE) , Paris , 75675 , France;2. Division of Humanities and Social Sciences , California Institute of Technology , Pasadena , CA , 91125 |
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| Abstract: | This article presents an empirical analysis of firms' order backlogs, inventories, production, and price adjustments to unanticipated demand shocks. The data are obtained from quarterly INSEE Business Survey Tests on firms' realizations, expectations, and appraisals of some various economic variables. The analysis is based on the formulation and the estimation of a recursive system of conditional log-linear probability models. |
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| Keywords: | Business Survey Tests Firms' adjustments Recursive system Log-linear probability models |
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