theory of unsecured credit account for the high volatility and procyclicality of credit and the high volatility and …

First Draft: November 1, 2011 We propose a theory of endogenous firm-level volatility over the business cycle based on … model is driven only by total factor productivity shocks and captures the business cycle properties of firm-level volatility …. Using a panel of U.S. firms (Compustat), we empirically document the countercyclical nature of firm-level volatility. We …

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 …

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 …

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 …

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 …

high volatility of trade is attributed to more severe inventory management considerations of firms involved in …