The relationship between inventory investment and the real interest rate has been difficult to assess empirically … real interest rate on inventory investment. The authors show that this framework does not separately identify the effects … of real interest rate on inventory investment from variables that determine the expected marginal cost of production. In …

The relationship between inventory investment and the real interest rate has been difficult to assess empirically … interest rate on inventory investment. The authors show that this framework does not separately identify the effects of real … interest rate on inventory investment from variables that determine the expected marginal cost of production. Consequently …