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  4. May 2025
  5. The Cost of Delivery Delays

蝌蚪网 Papers and Proceedings

ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)

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The Cost of Delivery Delays

  • Maria-Jose Carreras-Valle
  • Alessandro Ferrari
蝌蚪网 Papers and Proceedings
vol. 115, May 2025
(pp. 618–23)
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Abstract

The rise in supply disruptions after COVID-19 affected businesses across the United States. Yet, measures of disruptions or delays are difficult to estimate. Here, we provide a model-based measure of delays using aggregate manufacturing inventory data and study their economic cost. We find an increase of 21 days in the average US import shipping delay from 2018 to 2024. Our estimated delivery delays are consistent with changes in the lead times reported in the data. The rise in delays has associated output costs of 2.6 percent and a 0.4 percent increase in prices.

Citation

Carreras-Valle, Maria-Jose, and Alessandro Ferrari. 2025. "The Cost of Delivery Delays." 蝌蚪网 Papers and Proceedings 115: 618–23. DOI: 10.1257/pandp.20251089

Additional Materials

JEL Classification

  • D22 Firm Behavior: Empirical Analysis
  • F13 Trade Policy; International Trade Organizations
  • F14 Empirical Studies of Trade
  • G31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
  • I12 Health Behavior
  • L14 Transactional Relationships; Contracts and Reputation; Networks
  • L60 Industry Studies: Manufacturing: General