as it depends on initial inventory stocks and on the random disturbances within the period. Section 4 presents, for …, we use these results to present the dynamics of inventory behavior and the statistical relationships between real wages …

the gradual adjustment of inventory stocks. Two microeconomic models of inventory holdings are formulated. Both imply …

second is that inventory movements are quite persistent, even conditional on sales. To consider explanations for the two …, or some third, alternative provides a satisfactory explanation of inventory behavior. We suggest several directions for … future research that promise to improve our understanding of inventory behavior and thus of business cycles …

Econometric aspects of recent research on inventory models are surveyed. The discussion emphasizes issues relevant to … instrumental variables estimation of a first order condition of the Holt et al. (1960) linear quadratic inventory model, including … paper also briefly discusses estimation of a decision rule implied by the model, and, finally, the impliations for inventory …

they are much more successful in accounting for inventory behavior. The difference is attributable to cyclicality in the … countercyclical markups are chiefly responsible for the sluggish response of inventory stocks over the cycle …

inventory developments are of major importance in the propagation of business cycles; and they matter theoretically, in the …

for the countercyclical inventory-to-sales ratio in the data. Stronger real rigidities lower the cost of acquiring and … holding inventories during booms and counterfactually predict a procyclical inventory-to-sales ratio …

)-type inventory management problem successfully accounts for these features of the data. Moreover, the model can account for import … and import price dynamics in the aftermath of large devaluations. In particular, desired inventory adjustment in response …