challenges of late, especially in view of the increasing cost of production and slowing down of demand. The world automotive …

the response of production and inventory to cost and demand shocks. We develop several implications as to how financial … constraints affect the inventory response to cost shocks of constrained firms relative to unconstrained firms. We find consistent …

framework and firm-level prices and quantities data for detailed products allowing us to both measure demand, and its changes …. This in turn allows us to measure how changes in TFP-Q, demand and markups ultimately affected revenue TFP, as well as …-recession is due to both a weakening of demand and a decreasing TFP-Q pushing down sales, markups, revenue TFP and labour …

This paper compares the welfare effects of anticipated and unanticipated cost-push shocks in the canonical New … anticipation of a future cost-push shock leads to a higher welfare loss than an unanticipated shock. A welfare gain from the … anticipation of a future cost shock may only occur if prices are sufficiently flexible. We analytically show that this surprising …

enhance the understanding of market mechanisms that are caused by exogenous cost shocks for typical consumer goods. The … distribution channel. Many empirical studies implicate that exogenous cost shocks, which are caused by exchange rate changes, are … consumer good, our framework can be easily adapted to any other market and other sources that cause a change in production cost …