: in response to news about future increases in TFP, inventories rise and comove positively with other major macroeconomic … when extended to include inventories. To explain the empirical inventory behavior, we therefore develop a framework that …

Purpose: Inventories are introduced as a productive input into a real-business-cycle (RBC) setup augmented with … importance of the presence of inventories is investigated. Findings: The quantitative effect of inventories is found to be … fluctuations in Bulgaria, which is a novel result. Still, there is need for more research on the incorporation of inventories into …

materials, for both production as well as for inventories. The more detailed treatment of inventory holdings offers new insights …

This paper introduces inventories in an otherwise standard dynamic stochastic general equilibrium model. Firms … accumulate inventories to facilitate sales, but face a cost of doing so in terms of costly storage of intermediate goods. Based … inventory dynamics has a significant impact on parameter estimates and the following analyses. We find that inventories enter …

inventories: materials (input) inventories facilitate the production of finished goods, while finished goods (output) inventories … cyclicality of inventory investment and inventory-to-target ratios. Although inventories are an important element of the model … parameters associated with inventories play a minor role in reducing the volatility of output. …

This paper introduces inventories in an otherwise standard Dynamic Stochastic General Equilibrium Model (DSGE) of the … business cycle. Firms accumulate inventories to facilitate sales, but face a cost of doing so in terms of costly storage of … intermediate goods. The paper's main contribution is to present a DSGE model with inventories that is estimated using Bayesian …

-logarithmic form, and derive an estimable system of Euler equations for inventories and employment with implied cross …