TY - JOUR
T1 - Cyclicality of capital-intensive industries: a system dynamics simulation study of the paper industry
AU - Berends, P.A.J.
AU - Romme, A.G.L.
PY - 2001
Y1 - 2001
N2 - This paper provides a view on the cyclicality of capital-intensive industries that could add considerably to our understanding of how cycles in prices, profits and capacity come about. Previous studies of business cycles focus on macro-economic systems or on the agricultural sector. Causes for fluctuations are typically believed to be mainly exogenous in nature. We seek to extend the existing literature on industrial cycles by developing a model that incorporates endogenously generated cyclicality. A simulation model of the paper industry is developed, and validated on the basis of data for the US paper industry.
AB - This paper provides a view on the cyclicality of capital-intensive industries that could add considerably to our understanding of how cycles in prices, profits and capacity come about. Previous studies of business cycles focus on macro-economic systems or on the agricultural sector. Causes for fluctuations are typically believed to be mainly exogenous in nature. We seek to extend the existing literature on industrial cycles by developing a model that incorporates endogenously generated cyclicality. A simulation model of the paper industry is developed, and validated on the basis of data for the US paper industry.
U2 - 10.1016/S0305-0483(01)00043-3
DO - 10.1016/S0305-0483(01)00043-3
M3 - Article
VL - 29
SP - 543
EP - 552
JO - Omega : The International Journal of Management Science
JF - Omega : The International Journal of Management Science
SN - 0305-0483
IS - 6
ER -