Ebook: Inventory, Business Cycles and Monetary Transmission

Inventory changes constitute in all countries a small fraction of the Gross National Product but also a major source or an indicator of cyclical fluctuations. In this volume both possible ways of propagation are investigated by examining in the first part what macroeconomists have learned and still have to learn about inventories in the light of statistical definitions and problems. In the second part, the role of monetary shocks in propagating business cycles is considered through liquidity effects and in relation to inventory adjustment. A possible linkage between inventory and labor market is shown. Finally, new evidence and theoretical insights are provided on the linear-quadratic inventory model and its ability to discriminate econometrically among competing firm behavior.

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Inventory changes constitute in all countries a small fraction of the Gross National Product but also a major source or an indicator of cyclical fluctuations. In this volume both possible ways of propagation are investigated by examining in the first part what macroeconomists have learned and still have to learn about inventories in the light of statistical definitions and problems. In the second part, the role of monetary shocks in propagating business cycles is considered through liquidity effects and in relation to inventory adjustment. A possible linkage between inventory and labor market is shown. Finally, new evidence and theoretical insights are provided on the linear-quadratic inventory model and its ability to discriminate econometrically among competing firm behavior.

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Inventory changes constitute in all countries a small fraction of the Gross National Product but also a major source or an indicator of cyclical fluctuations. In this volume both possible ways of propagation are investigated by examining in the first part what macroeconomists have learned and still have to learn about inventories in the light of statistical definitions and problems. In the second part, the role of monetary shocks in propagating business cycles is considered through liquidity effects and in relation to inventory adjustment. A possible linkage between inventory and labor market is shown. Finally, new evidence and theoretical insights are provided on the linear-quadratic inventory model and its ability to discriminate econometrically among competing firm behavior.
Content:
Front Matter....Pages I-VI
Introduction....Pages 1-7
Front Matter....Pages 9-9
Inventory Fluctuations and Macroeconomics....Pages 11-35
Estimating the Change in Business Inventories in the U.S. National Accounts....Pages 36-57
Front Matter....Pages 59-59
Modeling the Liquidity Effect of a Money Shock....Pages 61-124
Changing Relations between Inventories and Bank Loans....Pages 125-147
Macroeconomic Policies and the Inventory Cycle....Pages 148-172
Front Matter....Pages 173-173
Inventories and Multi-Period Labor Contracts: Implications for Business Cycle Analysis....Pages 175-205
Front Matter....Pages 207-207
Variance Bounds Tests of Inventory Behavior in Disaggregate Manufacturing Industries....Pages 209-226
On a Test by K.D. West....Pages 227-252
Some Evidence on the Finite Sample Behavior of an Instrumental Variables Estimator of the Linear Quadratic Inventory Model....Pages 253-282
Back Matter....Pages 283-290

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Inventory changes constitute in all countries a small fraction of the Gross National Product but also a major source or an indicator of cyclical fluctuations. In this volume both possible ways of propagation are investigated by examining in the first part what macroeconomists have learned and still have to learn about inventories in the light of statistical definitions and problems. In the second part, the role of monetary shocks in propagating business cycles is considered through liquidity effects and in relation to inventory adjustment. A possible linkage between inventory and labor market is shown. Finally, new evidence and theoretical insights are provided on the linear-quadratic inventory model and its ability to discriminate econometrically among competing firm behavior.
Content:
Front Matter....Pages I-VI
Introduction....Pages 1-7
Front Matter....Pages 9-9
Inventory Fluctuations and Macroeconomics....Pages 11-35
Estimating the Change in Business Inventories in the U.S. National Accounts....Pages 36-57
Front Matter....Pages 59-59
Modeling the Liquidity Effect of a Money Shock....Pages 61-124
Changing Relations between Inventories and Bank Loans....Pages 125-147
Macroeconomic Policies and the Inventory Cycle....Pages 148-172
Front Matter....Pages 173-173
Inventories and Multi-Period Labor Contracts: Implications for Business Cycle Analysis....Pages 175-205
Front Matter....Pages 207-207
Variance Bounds Tests of Inventory Behavior in Disaggregate Manufacturing Industries....Pages 209-226
On a Test by K.D. West....Pages 227-252
Some Evidence on the Finite Sample Behavior of an Instrumental Variables Estimator of the Linear Quadratic Inventory Model....Pages 253-282
Back Matter....Pages 283-290
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