Inventories are widely believed to serve as a buffer stock against unexpected fluctuations in demand, allowing firms to … correlation between changes in inventory and changes in sales. These findings imply that inventories are not being used to smooth … use inventories to smooth production, but only partially. …

quicker response of inventories to aggregate shocks - at all stages of fabrication - buffers production from fluctuations in …

Manufacturers' finished goods inventories are less cyclical than shipments. This requires marginal cost to be more … markups arising from a procyclical shadow price of labor are chiefly responsible for the sluggishness of inventories. …

excess inventories, firms disinvest more in recessions than they do in expansions. The inventory adjustment process has …

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 …