We argue that the behavior of manufacturing inventories provides evidence against models of business cycle fluctuations … with short-run diminishing returns. Finished goods inventories move proportionally much less than sales or production over …

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

We develop a general-equilibrium model of inventories with explicit micro-foundations by embedding the production … shocks have incentives to bunch production and smooth sales by carrying inventories. The optimal inventory target of a firm … yields novel predictions for the role of inventories in macroeconomic stability: Inventories may not only greatly amplify but …

This paper examines the adjustment of inventories by firms in the UK and Spain. A widely-held view—but one which has … not found much support in previous studies of inventories— is that a key channel for monetary policy is through … with borrowing costs on inventories are estimated. Financial effects associated with liquidity and the borrowing ratio are …

We build and estimate a two-sector (goods and services) dynamic general equilibrium model with two types of inventories …: finished goods (output) inventories yield utility services while materials (input) inventories facilitate the production of … structural parameters associated with inventories, play a minor role in the reduction of the volatility of output. …

The motive to hold inventories purely in the hope of profiting from a price increase is called the speculative motive … implication for how large it is quantitatively. This paper incorporates the speculative motive for holding inventories into an … of the speculative role for holding inventories in this model is quite small. This suggests the possibility that the …