A1261
Title: What can stockouts tell about inflation: Evidence from online micro data
Authors: Alberto Cavallo - Harvard University (United States)
Oleksiy Kryvtsov - Bank of Canada (Canada) [presenting]
Abstract: A detailed micro dataset on product availability is used to construct a direct high-frequency measure of consumer product shortages during 2020--2021 pandemic. We document a widespread multi-fold rise in shortages in nearly all sectors early in the pandemic. Over time, the composition of shortages evolved from many temporary stockouts to mostly discontinued products, concentrated in fewer sectors. We show that product shortages have significant but transitory inflationary effects, and that these effects can be associated with the elevated cost of replenishing inventories.
