EconStor >
Bank of Canada, Ottawa >
Bank of Canada Working Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/53780
  
Title:Inventories and real rigidities in new Keynesian business cycle models PDF Logo
Authors:Kryvtsov, Oleksiy
Midrigan, Virgiliu
Issue Date:2009
Series/Report no.:Bank of Canada Working Paper 2009,9
Abstract:Kryvtsov and Midrigan (2008) study the behavior of inventories in an economy with menu costs, fixed ordering costs and the possibility of stock-outs. This paper extends their analysis to a richer setting that is capable of more closely accounting for the dynamics of the US business cycle. We find that the original conclusion survives in this setting: namely, the model requires an elasticity of real marginal cost to output approximately equal to the inverse intertemporal elasticity of substitution in consumption in order to account for the countercyclicality of the aggregate inventory-to-sales ratio in the data.
Subjects:Business fluctuations and cycles
Transmission of monetary policy
JEL:E31
F12
Document Type:Working Paper
Appears in Collections:Bank of Canada Working Papers

Files in This Item:
File Description SizeFormat
597606196.pdf460.08 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/53780

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.