We search for useful models of aggregate fluctuations with inventories. We focus exclusively on dynamic stochastic … performance gauged by its ability to explain the observed magnitude of inventories in the U.S. economy, alongside other empirical …,s) model is far more consistent with the behavior of aggregate inventories in the postwar U.S. when aggregate fluctuations …

that inventories amplify aggregate fluctuations. In contrast, our model economy exhibits a business cycle similar to that … of a comparable benchmark without inventories, though we do observe somewhat higher variability in employment, and lower … understanding of the role of inventory accumulation for cyclical movements in GDP. The presence of inventories does not …

The authors study trade between a buyer and a seller when both may have existing inventories of assets similar to those … being traded. They analyze how these inventories affect trade, information dissemination, and price formation. The authors … show that when the buyer's and seller's initial leverage is moderate, inventories increase price and trade volume, but when …

have existing inventories of assets similar to those being traded. We show that these inventories may lead to prices that … prevent a competitor from purchasing at a lower price and releasing bad news about inventory values. Inventories also prevent …

inventories of assets similar to those being traded. We analyze how these inventories affect trade, information dissemination, and … prices. We show that when traders’ initial leverages are moderate, inventories increase price and trade volume (a market “run …

This paper examines the role of inventories in the decline of production, trade, and expenditures in the US in the … trade, relative to a more standard model without inventories. The magnitudes of production, trade, and inventory responses …

infrequently and hold substantially larger inventories of imported goods than domestic goods. Using multiple sources of data, the …