Replication data for: Input and Output Inventory Dynamics
- Wen, Yi
AbstractThis paper develops an analytically tractable general equilibrium model of inventory dynamics based on a precautionary stockout-avoidance motive. The model's predictions are broadly consistent with the US business cycle and key features of inventory behavior. It is also shown that technological improvement of inventory management can increase, rather than decrease, the volatility of aggregate output. Key to this seemingly counterintuitive result is that a stockout-avoidance motive leads to a procyclical shadow value of inventories, which acts as an automatic stabilizer that discourages sales in booms and encourages demand in recessions, thereby reducing the variability of GDP. (JEL D92, E22, E23, E32, G31)
Is supplement to
DOI: 10.1257/mac.3.4.181 (Text)
Wen, Yi. “Input and Output Inventory Dynamics.” American Economic Journal: Macroeconomics 3, no. 4 (October 2011): 181–212. https://doi.org/10.1257/mac.3.4.181.
- ID: 10.1257/mac.3.4.181 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07