Econometrica: Jul, 1954, Volume 22, Issue 3

Inventory Fluctuations in Flaxseed and Linseed Oil, 1926-1939

https://doi.org/0012-9682(195407)22:3<310:IFIFAL>2.0.CO;2-E
p. 310-327

S. G. Allen

The behavior of economic units engaged in the production and distribution of flaxseed and linseed oil in the United States is summarized in a system of linear stochastic equations. The latter contains such jointly dependent, observable economic variables as production, stocks, and consumption of the above commodities. The particular equation system studied reflects the investigator's desire to explain quarterly inventory fluctuations in these commodities and is formulated in the light of market conditions prevailing during the period 1926-1939. Primarily for the latter reason, no claim of predictive usefulness under present conditions is made for the estimates of these equations. The paper concludes with an evaluation of the estimates.