Wen, Yi - Federal Reserve Bank of St. Louis - 2009
inventory behavior, including (i) a large inventory stock-to-sales ratio and a small inventory investment-to-sales ratio in the … as an automatic stabilizer that discourages final sales in a boom and encourages final sales during a recession, thereby … stockout-avoidance motive. The model’s predictions are broadly consistent with the U.S. business cycle and key features of …