Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/66913 
Year of Publication: 
2010
Series/Report no.: 
Bank of Canada Discussion Paper No. 2010-9
Publisher: 
Bank of Canada, Ottawa
Abstract: 
ToTEM - the Bank of Canada's principal projection and policy-analysis model for the Canadian economy - is extended to include inventories. In the model, firms accumulate inventories of finished goods for their role in facilitating the demand for goods. The model is successful in matching procyclical and volatile inventory investment behaviour. The authors show that the convex cost of stock adjustment is key to the model's ability to match the inventory data quantitatively.
Subjects: 
economic models
business fluctuations and cycles
JEL: 
E31
E32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
862.96 kB





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