cost of holding inventories. Both channels have equilibrium effects that are amplified and propagated over time through … inventories, which serve as a way to both smooth production and facilitate greater sales at a given price. Through the estimation … played by inventories. A temporary 100 basis point increase in both interest rates causes vehicle production to fall 12 …

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 …

-logarithmic form, and derive an estimable system of Euler equations for inventories and employment with implied cross …

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