TY  - JOUR
AU  - Cooper,Russell
AU  - Haltiwanger,John C.
TI  - Inventories and the Propagation of Sectoral Shocks
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2425
PY  - 1990
Y2  - July 1990
UR  - http://www.nber.org/papers/w2425
L1  - http://www.nber.org/papers/w2425.pdf
N1  - Author contact info:
Russell Cooper
Department of Economics
European University Institute
via della Piazzola, 43
Firenze, 50133
ITALY
E-Mail: russellcoop@gmail.com

John C. Haltiwanger
Department of Economics
University of Maryland
College Park, MD 20742
Tel: 301/405-3504
Fax: 301/405-3542
E-Mail: haltiwan@econ.umd.edu
M2  - featured in NBER digest on 1988-03-01
AB  - This paper studies the dynamic properties of an imperfectly competitive economy with inventory holdings. In particular, we focus on the serial correlation in aggregate output and employment produced by the holding of inventories in one sector of the economy and the co-movement between sectors of an economy over the cycle resulting from demand linkages. This model is then contrasted with a simple, competitive real business cycle model with inventories. We find that the predictions of these models with regards to the co-movement of employment may differ. Based on this, we present empirical evidence on the co-movement of employment over the business cycle which is consistent with the predictions of the model of imperfect competition with inventory holdings and demand linkages.
ER  -