Skip to main content Skip to main content
SHARE   Share on Twitter Share on Facebook Email

Durable Good Inventories and the Volatility of Production: Explaining the Less Volatile U.S. Economy

This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the causes of the volatility reduction of GDP since 1984.

Read Full Text (321K)


Subscribe to our newsletter


Follow us

Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo
Back to Top