The motive to hold inventories purely in the hope of profiting from a price increase is called the speculative motive … implication for how large it is quantitatively. This paper incorporates the speculative motive for holding inventories into an … of the speculative role for holding inventories in this model is quite small. This suggests the possibility that the …

We evaluate two leading models of aggregate fluctuations with inventories in general equilibrium: the (S,s) model and … the stockout avoidance model. Each is judged by its ability to explain the observed magnitude of inventories in the U … correlation with sales. We find that the (S,s) model is far more consistent with the behavior of aggregate inventories in the …

comovement between inventory investment and final sales is often interpreted as evidence that inventories amplify aggregate … inventories, though we do observe somewhat higher variability in employment, and lower variability in consumption and investment …. Thus, our equilibrium analysis reveals that the presence of inventories does not substantially raise the cyclical …