Louis J. Maccini
Department of Economics
Johns Hopkins University
Baltimore, MD 21218
Information about this author at RePEc
NBER Working Papers and Publications
|October 1993||Measuring Noise in Inventory Models|
with Steven N. Durlauf: w4487
This paper has two purposes. One is to assess different models of inventory behavior in terms of their ability to well approximate the realized data on inventories. We do this initially for the pure production smoothing model and then for a sequence of generalizations of the model. Our analysis both performs specification tests as well as measures the deviations of the data from each null model, which we refer to as model noise. This involves the introduction of a noise ratio which provides a metric for measuring the magnitude of the noise component of the data. A second purpose is to explore whether observed cost shocks, including in particular carefully measured series on raw materials prices, can be helpful in explaining inventory movements. We find that the basic production level...
Published: Journal of Monetary Economics, Vol. 36, no. 1 (1995): 65-89. citation courtesy of
|August 1990||The Resurgence of Inventory Research: What Have We Learned?|
with Alan S. Blinder: w3408
Recent empirical and theoretical research on business inventories is surveyed and critically evaluated. While most inventory research has had macroeconomic motivations, we focus on its microtheoretic basis and on potential conflicts between theory and evidence. The paper asks two principal questions. First, how can inventories, which are allegedly used by firms to stabilize production, nonetheless be a destabilizing factor at the macroeconomic level? Second, why, if firms are following the production-smoothing model, is production more variable than sales in many industries? We suggest that the so-called (S,s) model may help answer both questions.
Published: Journal of Economic Surveys, Vol.5, No.4, 1991. citation courtesy of