that inventories amplify aggregate fluctuations. In contrast, our model economy exhibits a business cycle similar to that … of a comparable benchmark without inventories, though we do observe somewhat higher variability in employment, and lower … understanding of the role of inventory accumulation for cyclical movements in GDP. The presence of inventories does not …

We evaluate two leading models of aggregate fluctuations with inventories in general equilibrium: the (S,s) model and … the stockout avoidance model. Each is judged by its ability to explain the observed magnitude of inventories in the U … correlation with sales. We find that the (S,s) model is far more consistent with the behavior of aggregate inventories in the …

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

) inventories by adding joint determination of input inventories which largely have been ignored Empirically input inventories are … more important than output inventories especially in business cycle fluctuations Maximum likelihood estimation of the …

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