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 …

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 …

This paper studies the factors underlying the heterogeneity in inventory behavior and performance across retail stores …' perceived quality of the shopping experience, and we analyze their relationship with inventory behavior and product variety … productivity. Store productivity is the main primitive that increases inventory turnover and product variety, and this increase is …