The importance of inventory investment in the business cycle is well known. Its role in the seasonal cycle is less well … known. We examine the variation of inventory investment and its comovement with output over the seasonal and business cycles … suggest that inventory investment may play as important a role in the seasonal cycle as it does in the business cycle …

Based on an analysis of high-frequency panel data for U.S. firms, this paper finds that inventory investment has been …, contrary to the finding of Kashyap, Lamont, and Stein (1994) that inventory investment is liquidity-constrained during …