In this paper, we estimate a VAR model to present an empirical …nding that an unexpected rise in the federal funds rate decreases the ratio of sales to stocks available for sales, while it increases …nished goods inventories. In addition, dynamic responses of these variables reach their peaks several quarters after a monetary shock. In order to understand the observed relationship between monetary policy and …nished goods inventories, we allow for the accumulation of …nished goods inventories in an optimizing sticky price model, where prices are set in a staggered fashion. In our model, holding …nished inventories helps …rms to generate more sales at given their prices. We then show that the model can generate the observed relationship between monetary shocks and …nished goods inventories. Furthermore, we …nd that allowing for inventory holdings leads to a Phillips curve equation, which makes the in ‡ation rate depend on the expected present-value of future marginal cost as well as the current period's marginal cost and the expected rate of future in ‡ation.
In this paper, we study the Calvo pricing models with finished goods inventory investment to demonstrate that the current inflation can be expressed as a function of the marginal cost of sales, not the marginal production cost, and expected future inflation. Under the assumption that the true aggregate marginal costs are not observable in actual data, we make use of equilibrium conditions for aggregate finished goods inventories to measure the time series of marginal costs, thereby leading to the construction of inflation series on the basis of the Phillips curve. Our results indicate the possibility of a successful fit of the empirical New Keynesian Phillips curve without relying on unit labor cost-a conventional measure of marginal production cost in the literature.JEL codes: E22, E31
Microhabitat segregation among grasshopper species in Asia has not been well studied. We determined the differences in the use of substrates by three common North East Asian grasshopper species co-existing on a natural meadow near Seoul, South Korea. While many Oedaleusinfernalis individuals were found on the ground, Acridacinerea and Atractomorphalata were usually observed on plants. Acridacinerea was mostly observed on the grass Zoysiajaponica (Poaceae) and Atractomorphalata was mostly found on plants from the family Asteraceae. This is the first study to provide quantitative information about microhabitat differences among some common grasshoppers in rural habitats of continental North East Asia. Future studies should focus on determining the mechanisms that produce such ecological segregation.
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