: 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 …

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 …

Purpose: Inventories are introduced as a productive input into a real-business-cycle (RBC) setup augmented with … importance of the presence of inventories is investigated. Findings: The quantitative effect of inventories is found to be … fluctuations in Bulgaria, which is a novel result. Still, there is need for more research on the incorporation of inventories into …

: 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 …