We investigate how uncertainty in retail sales can be explained by the return on a financial market index. This information can be employed in forecasting, hedging, and risk management. Our forecasting model expresses the total sales of a retailer as a function of sales forecasts generated by...

Industrial production output is generally correlated with the state of the economy. Nonetheless, during the times of economic downturn some industries take the biggest hit, while at the times of economic boom they reap most benefits. To provide insight into this phenomenon we map supply networks...

Our paper is motivated by a manufacturer that sells a single seasonal product through multiple retailers competing on an online marketplace, such as Amazon marketplace. Selling price uncertainty and evolution of forecasts of price and demand are key features of the online marketplace. Sourcing...

This paper uses the FactSet/Revere data set of supply linkages to study the structure of the global production network during 2003-2018. We examine five hypotheses. At the individual firm-level, we show that the in-degree of firms increased at 2.7% per year and out-degree increased at 2.1% per...

We propose two perspectives on U.S. manufacturing job losses to countries in Asia in 1990-2011: production cost arbitrage and the management of supply-demand mismatch. In our model, a firm facing demand uncertainty decides between investing in domestic or overseas production capacity. The model...

We study the impact of financial innovations on real investmentdecisions within the framework of an incomplete market economy comprisedof fi rms, investors, and an intermediary. The fi rms face uniqueinvestment opportunities that arise in their business operations and canbe undertaken at given...