when extended to include inventories. To explain the empirical inventory behavior, we therefore develop a framework that … higher future TFP through knowledge capital drives output and hours choices on the arrival of news and leads to inventory …

We study the effects of news shocks on inventory accumulation in a structural VAR framework. We establish that … inventories react strongly and positively to news about future increases in total factor productivity. Theory suggests that the …

The paper shows that taking inventory control out of the hands of competitive or exclusive retailers and assigning it … because doing so solves incentive distortions that arise when retailers have to allocate inventory across sales periods, and … thus allows for better intertemporal price discrimination. Assigning inventory control to a manufacturer is also shown to …

We develop a dynamic model of inventory investment and trade to examine how firms adjust to changes in international … are shown to significantly reduce both the inventory-sales and the import-sales ratios, as the firm adjusts its stockout …

costs of ordering firms hold an inventory of intermediates. We show that in response to an uncertainty shock firms optimally … adjust their inventory policy by cutting their orders of foreign intermediates disproportionately strongly. In the aggregate …

The paper develops a simple theoretical model of inventory control in global supply chains. It identifies a role for … intermediaries in managing inventory, and shows that inserting an intermediary as an additional link in a supply chain is profitable … when demand volatility is high. It also provides conditions under which the intermediary handling inventory is located in …