"Whether technological progress raises or lowers aggregate employment in the short run has been the subject of much debate in recent years. Using a simple model of industry employment, we show that cross-industry differences of inventory holding costs, demand elasticities, and price rigidities...

Whether technological progress raises or lowers aggregate employment in the short run has been the subject of much debate in recent years. Using a simple model of industry employment, we show that cross-industry differences of inventory holding costs, demand elasticities, and price rigidities...

The empirical study undertaken here employs a structural VAR to estimate the dynamic adjustment of manufacturing sales and inventories to both nominal demand and real supply shocks. The analysis suggests that these impulse responses are generally consistent with those of an equilibrium model of...