quicker response of inventories to aggregate shocks - at all stages of fabrication - buffers production from fluctuations in …

Manufacturers' finished goods inventories are less cyclical than shipments. This requires marginal cost to be more … markups arising from a procyclical shadow price of labor are chiefly responsible for the sluggishness of inventories. …

excess inventories, firms disinvest more in recessions than they do in expansions. The inventory adjustment process has …

We argue that the behavior of manufacturing inventories provides evidence against models of business cycle fluctuations … with short-run diminishing returns. Finished goods inventories move proportionally much less than sales or production over …

We examine the behavior of trade inventories using both industry-level and high-frequency firm-level data. The cost …-form predictions regarding the dynamics of inventories and sales can be used to test the model. The alternative of convex delivery … parameters are economically plausible, statistically significant, and generate observationally equivalent dynamics of inventories …