when extended to include inventories. To explain the empirical inventory behavior, we therefore develop a framework that … higher future TFP through knowledge capital drives output and hours choices on the arrival of news and leads to inventory …

We study the effects of news shocks on inventory accumulation in a structural VAR framework. We establish that … inventories react strongly and positively to news about future increases in total factor productivity. Theory suggests that the …

The paper develops a simple theoretical model of inventory control in global supply chains. It identifies a role for … intermediaries in managing inventory, and shows that inserting an intermediary as an additional link in a supply chain is profitable … when demand volatility is high. It also provides conditions under which the intermediary handling inventory is located in …

The paper shows that taking inventory control out of the hands of competitive or exclusive retailers and assigning it … because doing so solves incentive distortions that arise when retailers have to allocate inventory across sales periods, and … thus allows for better intertemporal price discrimination. Assigning inventory control to a manufacturer is also shown to …

sufficient condition for constructing the best response. Our methods do not require specific functional forms. Our theory has …