Inventories in a Competitive Environment
AbstractTrade is sequential: buyers arrive in batches and each batch completes trade before the next arrives. Producers allocate the available supply among all potential batches of buyers. Inventories accumulate whenever a batch does not arrive. Shocks to cost and demand are serially independent. There is a stationary relationship between inventories and prices with the following properties. Larger beginning-of-period inventories tend to depress prices. Inventories are positively serially correlated. A unit increase in inventories leads to an increase in the price spread. Output tends to vary more than sales. Copyright 1993 by University of Chicago Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Political Economy.
Volume (Year): 101 (1993)
Issue (Month): 5 (October)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JPE/
Other versions of this item:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jonas D.M. Fisher & Andreas Hornstein, 1995.
"(S,s) inventory policies in general equilibrium,"
Discussion Paper / Institute for Empirical Macroeconomics
104, Federal Reserve Bank of Minneapolis.
- Jonas D.M. Fisher & Andreas Hornstein, 1998. "(S,s) Inventory policies in general equilibrium," Working Paper 97-07, Federal Reserve Bank of Richmond.
- Fisher, J.D.M. & Hornstein, A., 1995. "(S,s)Inventory Policies in General Equilibrium," UWO Department of Economics Working Papers 9514, University of Western Ontario, Department of Economics.
- Jonas D.M. Fisher & Andreas Hornstein, 1996. "(S, s) inventory policies in general equilibrium," Working Paper Series, Macroeconomic Issues WP-96-24, Federal Reserve Bank of Chicago.
- Fafchamps, Marcel & Gunning, Jan Willem & Oostendorp, Remco, 2000.
"Inventories and Risk in African Manufacturing,"
Royal Economic Society, vol. 110(466), pages 861-93, October.
- Marcel Fafchamps & Jan Willem Gunning and Remco Oostendorp, 1999. "Inventories and risk in African manufacturing," Economics Series Working Papers WPS/1999-19, University of Oxford, Department of Economics.
- Marcel Fafchamps & Jan Willem Gunning & Remco Oostendorp, 1999. "Inventories and risk in African manufacturing," CSAE Working Paper Series 1999-19, Centre for the Study of African Economies, University of Oxford.
- A.V. Raja & Hans-Bernd Schäfer, .
"Are Inventories A Buffer Against Weak Legal Systems?,"
German Working Papers in Law and Economics
2004-1-1089, Berkeley Electronic Press.
- Angara V. Raja & Hans-Bernd Schaefer, 2007. "Are Inventories a Buffer Against Weak Legal Systems?," Kyklos, Wiley Blackwell, vol. 60(3), pages 415-439, 08.
- Andrew Caplin & John Leahy, 2008.
"Trading Frictions and House Price Dynamics,"
NBER Working Papers
14605, National Bureau of Economic Research, Inc.
- Diego Escobari & Li Gan, 2007. "Price Dispersion under Costly Capacity and Demand Uncertainty," NBER Working Papers 13075, National Bureau of Economic Research, Inc.
- Bental, Benjamin & Eden, Bemjamin, 1996. "Money and inventories in an economy with uncertain and sequential trade," Journal of Monetary Economics, Elsevier, vol. 37(3), pages 445-459, June.
- Bental, Benjamin & Demougin, Dominique, . "Should We Have or Should We Have Not, and Who Should Have Paid?," Working Papers WP2011/3, University of Haifa, Department of Economics, revised 01 Mar 2011.
- Benjamin Eden, 2001. "Inventories and the Business Cycle: Testing a Sequential Trading Model," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(3), pages 562-574, July.
- Benjamin Eden, 2013. "Price Dispersion And Demand Uncertainty: Evidence From Us Scanner Data," Vanderbilt University Department of Economics Working Papers 13-00015, Vanderbilt University Department of Economics.
- Terry J. Fitzgerald, 1997. "Inventories and the business cycle: an overview," Economic Review, Federal Reserve Bank of Cleveland, issue Q III, pages 11-22.
- Benjamin Eden, 2013. "Price dispersion and efficiency," Vanderbilt University Department of Economics Working Papers 13-00012, Vanderbilt University Department of Economics.
- Marcel Fafchamps Jan Willem Gunning & Remco Oostendorp, . "Inventories, Liquidity, and Contractual Risk in African Manufacturing," Working Papers 97020, Stanford University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.