EconPapers    
Economics at your fingertips  
 

What Drives Inventory Accumulation? News on Rates of Return and Marginal Costs

Christoph Görtz (), Christopher Gunn and Thomas Lubik
Additional contact information
Christopher Gunn: Carleton University
Thomas Lubik: Federal Reserve Bank of Richmond

Discussion Papers from Department of Economics, University of Birmingham

Abstract: We study the effects of news shocks on inventory accumulation in a structural VAR framework. We establish that inventories react strongly and positively to news about future increases in total factor productivity. Theory suggests that the transmission channel of news shocks to inventories works through movements in marginal costs, through movements in sales, or through interest rates. We provide evidence that changes in external and internal rates of return are central to the transmission for such news shocks. We do not find evidence of a strong substitution effect that shifts production from the present into the future.

Keywords: Structural VAR; News Shocks; Inventories (search for similar items in EconPapers)
JEL-codes: C32 E22 E32 G31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: 2019-09
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
ftp://ftp.bham.ac.uk/pub/RePEc/pdf/19-09.pdf

Related works:
Working Paper: What Drives Inventory Accumulation? News on Rates of Return and Marginal Costs (2019) Downloads
Working Paper: What Drives Inventory Accumulation? News on Rates of Return and Marginal Costs (2019) Downloads
Working Paper: What Drives Inventory Accumulation? News on Rates of Return and Marginal Costs Downloads
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:bir:birmec:19-09

Access Statistics for this paper

More papers in Discussion Papers from Department of Economics, University of Birmingham Contact information at EDIRC.
Bibliographic data for series maintained by Oleksandr Talavera ().

 
Page updated 2019-12-08
Handle: RePEc:bir:birmec:19-09