Durable good inventories and the volatility of production: explaining the less volatile U.S. economy

Yi Wen

No 2005-047, Working Papers from Federal Reserve Bank of St. Louis

Abstract: 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.

Keywords: Investments; Production (Economic theory) (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-bec and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://research.stlouisfed.org/wp/2005/2005-047.pdf (application/pdf)

Related works:
Working Paper: Durable Goods Inventories and the Volatility of Production: Explaining the Less Volatile U.S. Economy (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlwp:2005-047

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis ().