With the widespread application of inventory control Systems in industry and trade and a fast growing Services sector the influence of inventory changes on the business sector should become less important over time. However, the empirical eyidence for Germany in the period 1970-1994 shows that...

Bivariate SVAR models employing long-run identifying restrictions are often used to investigate the source of business cycle fluctuations. Their advantage is the simplicity in use and interpretation. However, their low dimension may also lead to a failure of the identification procedure, with...