Arbeitspapier

Inventory cycles

This paper investigates a rational dynamic stochastic general equilibrium model with a stockout constraint and a production chain. Our model shows that both stockout avoidance and cost shock mechanisms replicate stylised inventory facts

Sprache
Englisch

Erschienen in
Series: Department of Economics Discussion Paper ; No. 08,04

Klassifikation
Wirtschaft
Business Fluctuations; Cycles
Computable General Equilibrium Models
Thema
production is more volatile than sales and inventory investment is procyclical. In addition, production smoothing also works at very high frequencies. Note that the cost shock and production smoothing mechanisms are naturally embedded in our micro-founded general equilibrium framework. Moreover, as a by-product, the production chain causes the slow adjustment of inventories in aggregate. Consequently, our model generates (a) high labour volatility and (b) low correlation between labour productivity and output
the standard RBC cannot produce these two empirical findings. Finally, our model yields inventory cycles.
Vorratsvermögen
Konjunktur
Allgemeines Gleichgewicht
Theorie

Ereignis
Geistige Schöpfung
(wer)
Shibayama, Katsuyuki
Ereignis
Veröffentlichung
(wer)
University of Kent, Department of Economics
(wo)
Canterbury
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Shibayama, Katsuyuki
  • University of Kent, Department of Economics

Entstanden

  • 2008

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