TY  - JOUR
AU  - Ramey,Valerie A.
AU  - Vine,Daniel J.
TI  - Why Do Real and Nominal Inventory-Sales Ratios Have Different Trends
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10703
PY  - 2004
Y2  - August 2004
UR  - http://www.nber.org/papers/w10703
L1  - http://www.nber.org/papers/w10703.pdf
N1  - Author contact info:
Valerie A. Ramey
Department of Economics, 0508
University of California, San Diego
9500 Gilman Drive
La Jolla, CA 92093-0508
Tel: 858/534-2388
Fax: 858/534-7040
E-Mail: VRAMEY@UCSD.EDU

Daniel Vine
Federal Reserve Board
20th Street and Constitution Ave. NW
Mail Stop 82
Washington, DC 20551
Tel: 202-452-3468
E-Mail: daniel.j.vine@frb.gov
AB  - This note explains the diverging trends between real and nominal aggregate inventory-sales ratios. The combined effect of two features of the data explains the divergence. First, while aggregate sales include both goods and services, inventories include only goods. Second, there has been a strong secular decrease in the relative price of goods. The combination of these two factors causes the real and nominal aggregate inventory-sales ratios to have different trends.
ER  -