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Inventories cycle in an augmented RBC model

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  • Collard, Fabrice
  • Jacques, Jean-Francois

Abstract

We propose an augmented version of the R.B.C. model that can take into account the existence of lags in observation of demand shocks. This hypothesis seems to be a good framework to account for inventories fluctuations. We find some evidence showing the introduction of lag in observation as well as the existence of monetary shocks improve the ability of the model in matching the observed fluctuations
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Suggested Citation

  • Collard, Fabrice & Jacques, Jean-Francois, 1996. "Inventories cycle in an augmented RBC model," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 9-19, August.
    • Handle: RePEc:eee:proeco:v:45:y:1996:i:1-3:p:9-19
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    More about this item

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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