McCarthy, Jonathan; Zakrajsek, Egon - Federal Reserve Bank of New York - 1998
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 …