NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Inventories and the Business Cycle: An Equilibrium Analysis of (S,s) Policies

Aubhik Khan, Julia Thomas

NBER Working Paper No. 10078
Issued in November 2003

---- Acknowledgements -----

We thank Patrick Kehoe, Robert King and Richard Rogerson for extensive discussions and suggestions that have substantially raised the quality of this work. We are also grateful to Fernando Alvarez, Ellen McGrattan, Edward Prescott, Valerie Ramey and two anonymous referees, as well as seminar participants at Alicante, Bank of Canada, Carnegie-Mellon, Cornell, Indiana, Iowa, Ohio State, Montreal, Penn, Pompeu Fabra, UQAM and Yale and The Federal Reserve Banks of Atlanta, Minneapolis, Philadelphia and St.Louis and session participants at the 2002 Midwest Macro and SED meetings, February 2003 NBER EF&G meetings, and June 2003 Madrid Conference on Lumpy Investment, for helpful comments. Thomas thanks the Alfred P. Sloan Foundation for a research fellowship supporting this work, and the National Science Foundation for research support under grant #0318163. The views expressed in this paper do not reflect those of the Federal Reserve Bank of Philadelphia, the Federal Reserve System, or the National Burau of Economic Research.

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