@techreport{NBERw3635,
 title = "Why Do Countries and Industries with Large Seasonal Cycles Also Have    Large Business Cycles?",
 author = "J. Joseph Beaulieu and Jeffrey K. MacKie-Mason and Jeffrey A. Miron",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "3635",
 year = "1991",
 month = "February",
 URL = "http://www.nber.org/papers/w3635",
 abstract = {We show there is a strong, positive correlation across countries and industries between the standard deviation of the seasonal component and the standard deviation of the non-seasonal component of aggregate variables such as output, labor input, interest rates, and prices. After documenting this stylized fact, we discuss possible explanations and develop a model that generates our empirical finding. The main feature of the model is that firms endogenously choose their degree of technological flexibility as a function of the amounts of seasonal and non-seasonal variation in demand. Although this model is intended to be illustrative, we find evidence supporting one of its key empirical implications.},
}