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The increasing importance of retailers' inventories

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  • Paula R. Worthington

Abstract

Although inventory--sales (IS) ratios and inventory volatility have declined somewhat since the early 1980s, little evidence supports the view that declining IS ratios are associated with declines in inventory investment volatility. In the retail sector, IS ratios have risen and inventory investment volatility has, at best, not increased, pointing to a more significant role in future cyclical fluctuations.

Suggested Citation

  • Paula R. Worthington, 1998. "The increasing importance of retailers' inventories," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 22(Q III), pages 2-12.
    • Handle: RePEc:fip:fedhep:y:1998:i:qiii:p:2-12:n:v.22no.3
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    Cited by:

    1. Jonathan McCarthy & Egon Zakrajšek, 1998. "Microeconomic inventory adjustment and aggregate dynamics," Staff Reports 54, Federal Reserve Bank of New York.

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