in liquidity. But a wider-angle lens exposes an imposing image of commonality. Quoted spreads, quoted depth, and effective spreads co-move with market- and industry-wide liquidity. After controlling for wellknown individual liquidity determinants, such as volatility, volume, and price, common influences remain

Abstract: This paper reports the results of a detailed examination of the hypothesis that improved inventory management and production techniques are responsible for the decline in the volatility of U.S. GDP growth. Our innovations are to look at the data at a finer level of disaggregation than

We study the role of inventories in explaining the decline in U.S. output volatility observed in recent years. Our analysis is motivated by two striking features in the data. First, as is commonly noted, output growth was more volatile than sales growth before 1984 but in recent years they have

More than 80 percent of the decline in the variance of aggregate output since 1984 is accounted for by a decline in the covariance (and correlation) of output among industries that hold inventories. Using a HAVAR macro model (Fratantoni and Schuh 2003) with only two sectors, manufacturing

A stylized fact associated with inventory behavior is that durable goods production and inventory investment are about 5 times more volatile than those of nondurable goods. This paper shows that the stockout-avoidance theory of inventories (Kahn, AER 1987) featuring demand uncertainty

of inventory investment is more important, after 1984:1 than in earlier years for the overall manufacturing and trade sector. Finally, the evidence suggests that industries where IS ratios fell are those where inventory investment volatility played a smaller role in output volatility in the later period.

Traditional theories of capital structure imply a consistent relationship between firm profitability and firm leverage. Empirical data, however, suggest that the relationship is not monotonic. In the cross-section of firms, non-profitable firms become significantly more leveraged as losses decrease; profitable firms become significantly less leveraged as profits increase until a point where the most profitable firms have again significantly greater leverage as profits increase. In this paper, we present an extension of a model of Xu and Birge (2004) that is consistent with these observations. Themodel assumes that

Careful examination of aggregate data from the U.S. and other OECD countries reveals that production and inventory behavior exhibit paradoxical features: 1) Inventory investment is strongly countercyclical at very high frequencies (e.g., 2-3 quarters per cycle); it is procycli-cal only

Described the development and validation of the Functional Disability Inventory (FDI)for school-age children and adolescents. Results provide support for con-struct, concurrent, and predictive validity. FDI scores also demonstrated sta-bility over a 3-month period in patients with a chronic

the option to produce the commodity now rather than waiting for more price information. I examine the role of volatility in short-run commodity market dynamics, as well as the determinants of volatility itself. Specifically, I develop a model describing the joint dynamics of inventories, spot and futures