Durable good inventories and the volatility of production: explaining the less volatile U.S. economy

This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the causes of the volatility reduction of GDP since 1984.

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Year of publication:	2005
Authors:	Wen, Yi
Institutions:	Federal Reserve Bank of St. Louis
Subject:	Investments \| Production (Economic theory)

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2005-047
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005707688