Wang, Yi Pengfei; Wen; Xu, Zhiwei - Federal Reserve Bank of St. Louis - 2012
We estimate a DSGE model with (S,s) inventory policies. We find that (i) taking inventories into account can significantly improve the empirical fit of DSGE models in matching the standard business-cycle moments (in addition to explaining inventory fluctuations); (ii) (S,s) inventory policies...