Inventories and the business cycle
Subtitle: an equilibrium analysis of (s,s) policies
By: Aubhik Khan and Julia Thomas.
Contributors: Thomas, Julia.
Series: Federal Reserve Bank of Minneapolis, Research Department staff report ;; 329; Staff report (Federal Reserve Bank of Minneapolis. Research Dept. : Online) ;; 329.
Publisher: Federal Reserve Bank of Minneapolis
Published: 2003
Place of publication: [Minneapolis, Minn.]
Language: eng
Format: Electronic resource
Subjects: Inventories -- United States -- Econometric models.; Business cycles -- United States -- Econometric models.
Description: "We develop an equilibrium business cycle model where producers of final goods pursue generalized (S,s) inventory policies with respect to intermediate goods due to nonconvex factor adjustment costs.  When calibrated to reproduce the average inventory-to-sales ratio in postwar U.S.  data, our model explains over half of the cyclical variability of inventory investment.  Moreover, inventory accumulation is strongly procyclical, and production is more volatile than sales, as in the data"--Federal Reserve Bank of Minneapolis web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 11/16/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.