Humphreys, Brad R.; Maccini, Louis J.; Schuh, Scott - Federal Reserve Bank of Boston - 1997
traditional linear-quadratic model of output (finished goods) inventories by incorporating delivery and usage of input materials … input inventories are empirically more important than output inventories, especially in business cycle fluctuations. Firms … simultaneously choose input and output inventories; thus, the model exhibits feedback between stocks induced by dynamic stage …