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Lecture Notes in Economics and Mathematical Systems

The Rational Expectations Equilibrium Inventory Model

Theory and Applications

Editors: Kollintzas, Tryphon (Ed.)

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About this book

This volume consists of six essays that develop and/or apply "rational expectations equilibrium inventory models" to study the time series behavior of production, sales, prices, and inventories at the industry level. By "rational expectations equilibrium inventory model" I mean the extension of the inventory model of Holt, Modigliani, Muth, and Simon (1960) to account for: (i) discounting, (ii) infinite horizon planning, (iii) observed and unobserved by the "econometrician" stochastic shocks in the production, factor adjustment, storage, and backorders management processes of firms, as well as in the demand they face for their products; and (iv) rational expectations. As is well known according to the Holt et al. model firms hold inventories in order to: (a) smooth production, (b) smooth production changes, and (c) avoid stockouts. Following the work of Zabel (1972), Maccini (1976), Reagan (1982), and Reagan and Weitzman (1982), Blinder (1982) laid the foundations of the rational expectations equilibrium inventory model. To the three reasons for holding inventories in the model of Holt et al. was added (d) optimal pricing. Moreover, the popular "accelerator" or "partial adjustment" inventory behavior equation of Lovell (1961) received its microfoundations and thus overcame the "Lucas critique of econometric modelling.

Table of contents (6 chapters)

Table of contents (6 chapters)
  • The Linear Rational Expectations Equilibrium Inventory Model: An Introduction

    Pages 1-32

    Kollintzas, Tryphon

  • Inventories and Price Fluctuations under Perfect Competition and Monopol

    Pages 34-68

    Aiyagari, S. Rao (et al.)

  • Temporal Aggregation and the Stock Adjustment Model of Inventories

    Pages 70-108

    Christiano, Lawrence J. (et al.)

  • A Linear Rational Expectations Equilibrium Model of the American Petroleum Industry

    Pages 110-197

    Dimelis, Sophia P. (et al.)

  • Seasonality, Cost Shocks, and the Production Smoothing Model of Inventories

    Pages 199-244

    Miron, Jeffrey A. (et al.)

Buy this book

eBook $84.99
price for USA in USD
  • ISBN 978-1-4684-6374-3
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $109.99
price for USA in USD
  • ISBN 978-0-387-96940-4
  • Free shipping for individuals worldwide
  • Institutional customers should get in touch with their account manager
  • Covid-19 shipping restrictions
  • Usually ready to be dispatched within 3 to 5 business days, if in stock
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Bibliographic Information

Bibliographic Information
Book Title
The Rational Expectations Equilibrium Inventory Model
Book Subtitle
Theory and Applications
Editors
  • Tryphon Kollintzas
Series Title
Lecture Notes in Economics and Mathematical Systems
Series Volume
322
Copyright
1989
Publisher
Springer-Verlag New York
Copyright Holder
Springer-Verlag, New York, Inc.
eBook ISBN
978-1-4684-6374-3
DOI
10.1007/978-1-4684-6374-3
Softcover ISBN
978-0-387-96940-4
Series ISSN
0075-8442
Edition Number
1
Number of Pages
XI, 269
Topics