materials, for both production as well as for inventories. The more detailed treatment of inventory holdings offers new insights …

This paper introduces inventories in an otherwise standard dynamic stochastic general equilibrium model. Firms … accumulate inventories to facilitate sales, but face a cost of doing so in terms of costly storage of intermediate goods. Based … inventory dynamics has a significant impact on parameter estimates and the following analyses. We find that inventories enter …

: in response to news about future increases in TFP, inventories rise and comove positively with other major macroeconomic … when extended to include inventories. To explain the empirical inventory behavior, we therefore develop a framework that …

inventories: materials (input) inventories facilitate the production of finished goods, while finished goods (output) inventories … cyclicality of inventory investment and inventory-to-target ratios. Although inventories are an important element of the model … parameters associated with inventories play a minor role in reducing the volatility of output. …

This paper introduces inventories in an otherwise standard Dynamic Stochastic General Equilibrium Model (DSGE) of the … business cycle. Firms accumulate inventories to facilitate sales, but face a cost of doing so in terms of costly storage of … intermediate goods. The paper's main contribution is to present a DSGE model with inventories that is estimated using Bayesian …

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 …

quicker response of inventories to aggregate shocks - at all stages of fabrication - buffers production from fluctuations in …

Manufacturers' finished goods inventories are less cyclical than shipments. This requires marginal cost to be more … markups arising from a procyclical shadow price of labor are chiefly responsible for the sluggishness of inventories. …

excess inventories, firms disinvest more in recessions than they do in expansions. The inventory adjustment process has …