translate into production, however, especially when inventories are involved. We look at the “cash-for-clunkers” program that … inventories buffered the movements in sales. These findings suggest caution in judging the efficacy of such policies by their …

We argue that the behavior of manufacturing inventories provides evidence against models of business cycle fluctuations … with short-run diminishing returns. Finished goods inventories move proportionally much less than sales or production over …