Haltiwanger, John C; Maccini, Louis J - In: Economic Journal 98 (1988) 392, pp. 731-45
This paper develops a model of firm behavior under uncertainty designed to study the interac tion of inventories and layoffs. The model is a blend of a buffer sto ck model of inventory behavior and an implicit contract model of layo ffs. The model creates a distinction between inventory-biased...