Nalewaik, Jeremy; Pinto, Eugénio - In: Journal of Macroeconomics 43 (2015) C, pp. 62-80
We study how producers of capital goods set shipments in response to fluctuations in new orders. We find that shipments respond more to orders when new orders fall below a certain level relative to shipments, usually after orders plunge in recessions. This cyclical change in producers’...