leads to a procyclical shadow value of inventories, which acts as an automatic stabilizer that discourages sales in booms …

inventories: materials (input) inventories facilitate the production of finished goods, while finished goods (output) inventories … cyclicality of inventory investment and inventory-to-target ratios. Although inventories are an important element of the model … parameters associated with inventories, such as the input inventory to output ratio, play a small role in reducing the volatility …

, output, and inventories. Unlike the widely documented change in absolute volatility over that period, known as the Great … "investment wedge" estimated with inventories, unlike previous measures, correlates well with established independent measures of …

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 …

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

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