Inventories, lumpy trade, and large devaluations

American Economic Review

Volumn 100, Issue 5, 2010, Pages 2304-2339

  Alessandria, George ^a   Kaboski, Joseph P ^b   Midrigan, Virgiliu ^c  

^a FEDERAL RESERVE BANK OF PHILADELPHIA   (United States)

^b UNIVERSITY OF NOTRE DAME   (United States)

^c NEW YORK UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 78650456389     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: 10.1257/aer.100.5.2304     Document Type: Article

References (41)

1. Aguiar, Mark, and Gita Gopinath. 2007. "Emerging Market Business Cycles: The Cycle Is the Trend". Journal of Political Economy, 115 (1):69-102.
2. Aguirregabiria, Victor. 1999. "The Dynamics of Markups and Inventories in Retailing Firms". Review of Economic Studies, 66 (2):275-308.
3. Alessandria, George, and Horag Choi. 2007a. "Do Sunk Costs of Exporting Matter for Net Export Dynamics?" Quarterly Journal of Economics, 122 (1):289-336.
4. Alessandria, George, and Horag Choi. 2007b. "Establishment Heterogeneity, Exporter Dynamics, and the Effects of Trade Liberalization". Federal Reserve Bank of Philadelphia Working Paper 07-17.
5. Alessandria, George, Joseph P. Kaboski, and Virgiliu Midrigan. 2010. "The Great Trade Collapse of 2008-09: An Inventory Adjustment?" IMF Economic Review, 58 (2).
6. Anderson, James E., and Eric van Wincoop. 2004. "Trade Costs". Journal of Economic Literature, 42 (3):691-751.
7. Backus, David K., Patrick J. Kehoe, and Finn E. Kydland. 1994. "Dynamics of the Trade Balance and the Terms of Trade: The J-Curve?" American Economic Review, 84 (1):84-103.
8. Baldwin, Richard. 1988. "Hysteresis in Import Prices: The Beachhead Effect". American Economic Review, 78 (4):773-85.
9. Baldwin, Richard, and Paul Krugman. 1989. "Persistent Trade Effects of Large Exchange Rate Shocks". Quarterly Journal of Economics, 104 (4):635-54.
10. Burstein, Ariel, and Christian Hellwig. 2007. "Prices and Market Shares in a Menu Cost Model". http://www.econ. ucla.edu/arielb/menucost. pdf.
11. Burstein, Ariel, Martin Eichenbaum, and Sergio Rebelo. 2005. "Large Devaluations and the Real Exchange Rate". Journal of Political Economy, 113 (4):742-84.
12. Campa, José Manuel, and Linda S. Goldberg. 2006. "Distribution Margins, Imported Inputs, and the Sensitivity of the CPI to Exchange Rates". National Bureau of Economic Research Working Paper 12121.
13. Chaney, Thomas. 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade". American Economic Review, 98 (4):1707-21.
14. Copeland, Adam, Wendy Dunn, and George Hall. 2005. "Prices, Production, and Inventories over the Automotive Model Year". Federal Reserve Board Finance and Economics Discussion Series Working Paper 2005-25.
15. Corsetti, Giancarlo, and Luca Dedola. 2005. "A Macroeconomic Model of International Price Discrimination". Journal of International Economics, 67 (1):129-55.
16. Das, Sanghamitra, Mark J. Roberts, and James R. Tybout. 2007. "Market Entry Costs, Producer Heterogeneity, and Export Dynamics". Econometrica, 75 (3):837-73.
17. Djankov, Simeon, Caroline Freund, and Cong S. Pham. 2006. "Trading on Time". World Bank Policy Research Working Paper 3909.
18. Evans, Carolyn L., and James Harrigan. 2005. "Distance, Time, and Specialization: Lean Retailing in General Equilibrium". American Economic Review, 95 (1):292-313.
19. Ghironi, Fabio, and Marc J. Melitz. 2005. "International Trade and Macroeconomic Dynamics with Heterogeneous Firms". Quarterly Journal of Economics, 120 (3):865-915.
20. Goldberg, Pinelopi Koujianou, and Rebecca Hellerstein. 2007. "A Framework for Identifying the Sources of Local Currency Price Stability with an Empirical Application". Federal Reserve Bank of New York Staff Report 287.
21. Goldberg, Pinelopi Koujianou, and Michael M. Knetter. 1997. "Goods Prices and Exchange Rates: What Have We Learned?" Journal of Economic Literature, 35 (3):1243-72.
22. Guasch, J. Luis, and Joseph Kogan. 2001. "Inventories in Developing Countries: Levels and Determinants - A Red Flag for Competitiveness and Growth". World Bank Policy Research Working Paper 2552.
23. Hall, George, and John Rust 2000. "An Empirical Model of Inventory Investment by Durable Commodity Intermediaries". Carnegie-Rochester Conference Series on Public Policy, 52 (6):171-214.
24. Hall, George, and John Rust. 2002. "Econometric Methods for Endogenously Sampled Time Series: The Case of Commodity Price Speculation in the Steel Market". http://economics.uchicago.edu/download/sm22.pdf.
25. Hall, George, and John Rust. 2003. "Simulated Minimum Distance Estimation of a Model of Optimal Commodity Price Speculation with Endogenously Sampled Prices". https://editorialexpress.com/jrust/research/papers/ steelmetrics.pdf.
26. Hsieh, Chang-Tai, and Jonathan A. Parker. 2007. "Taxes and Growth in a Financially Underdeveloped Country: Evidence from the Chilean Investment Boom". Economia: Journal of the Latin American and Caribbean Economic Association, 8 (1):1-40.
27. Hummels, David. 2001a. "Time as a Trader Barrier". http://www.krannert.purdue.edu/faculty/hummelsd/research/time3b.pdf.
28. Hummels, David. 2001b. "Toward a Geography of Trade Costs". http://www.krannert.purdue.edu/faculty/hummelsd/research/toward/TGTC.pdf.
29. Junz, Helen B., and Rudolf R. Rhomberg. 1973. "Price Competitiveness in Export Trade among Industrial Countries". American Economic Review, 63 (2):412-18.
30. Khan, Aubhik, and Julia K. Thomas. 2007a. "Inventories and the Business Cycle: An Equilibrium Analysis of (S, s) Policies". American Economic Review, 97 (4):1165-88.
31. Khan, Aubhik, and Julia K. Thomas. 2007b. "Explaining Inventories: A Business Cycle Assessment of the Stockout Avoidance and (S, s) Motives". Macroeconomic Dynamics, 11 (5):638-64.
32. Kollintzas, Tryphon E., and Steven L. Husted. 1984. "Distributed Lags and Intermediate Good Imports". Journal of Economic Dynamics and Control, 8 (3):303-27.
33. Magee, Stephen P. 1973. "Currency Contracts, Pass-through, and Devaluation". Brookings Papers on Economic Activity, 4 (1):303-25.
34. Mazzenga, Elisabetta, and Morten O. Ravn. 2004. "International Business Cycles: The Quantitative Role of Transportation Costs". Journal of International Money and Finance, 23 (4):645-71.
35. Meade, Ellen E. 1988. "Exchange Rates, Adjustment, and the J-Curve". Federal Reserve Bulletin, 74 (10):633-44.
36. Melitz, Marc J. 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity". Econometrica, 71 (6):1695-1725.
37. Mendoza, Enrique G. 1995. "The Terms of Trade, the Real Exchange Rate, and Economic Fluctuations". International Economic Review, 36 (1):101-37.
38. Neumeyer, Pablo A., and Fabrizio Perri. 2005. "Business Cycles in Emerging Economies: The Role of Interest Rates". Journal of Monetary Economics, 52 (2):345-80.
39. Richardson, Helen. 1995. "Control Your Costs - Then Cut Them". Transportation & Distribution, 36 (12):94.
40. Roberts, Mark J., and James R. Tybout. 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs". American Economic Review, 87 (4):545-64.
41. Ruhl, Kim. 2005. "Solving the Elasticity Puzzle in International Economics". Unpublished.