Aggregate dynamics of lumpy agents
AbstractThis paper identifies the criteria for dynamic synchronization of the movement of agents who make intermittent adjustment to inventory stocks, leading to "harmonic resonance" rather than cancellation. I use a discrete Markov process model of (S,s) inventory adjustment to establish a theoretical framework for the aggregate dynamics and use simulations to demonstrate the distribution effects of a discrete model of lumpy behavior. The paper identifies circumstances that lead to increased skewness of the distribution of agents over the inventory interval. This has application in financial, labor and commodity markets.
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 InfoPaper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 1996-003.
Date of creation: 1996
Date of revision:
Publication status: Published in International Journal of Production Economics, March 1999
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan S. Blinder & Louis J. Maccini, 1990.
"The Resurgence of Inventory Research: What Have We Learned?,"
NBER Working Papers
3408, National Bureau of Economic Research, Inc.
- Blinder, Alan S & Maccini, Louis J, 1991. " The Resurgence of Inventory Research: What Have We Learned?," Journal of Economic Surveys, Wiley Blackwell, vol. 5(4), pages 291-328.
- repec:fth:coluec:465 is not listed on IDEAS
- Caplin, Andrew S & Spulber, Daniel F, 1987.
"Menu Costs and the Neutrality of Money,"
The Quarterly Journal of Economics,
MIT Press, vol. 102(4), pages 703-25, November.
- Giuseppe Bertola & Ricardo J. Caballero, 1990.
"Kinked Adjustment Costs and Aggregate Dynamics,"
in: NBER Macroeconomics Annual 1990, Volume 5, pages 237-296
National Bureau of Economic Research, Inc.
- Kahn, James A, 1987. "Inventories and the Volatility of Production," American Economic Review, American Economic Association, vol. 77(4), pages 667-79, September.
- Caplin, Andrew S, 1985. "The Variability of Aggregate Demand with (S, s) Inventory Policies," Econometrica, Econometric Society, vol. 53(6), pages 1395-1409, November.
- Ramey, Valerie A, 1991. "Nonconvex Costs and the Behavior of Inventories," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 306-34, April.
- Alan S. Blinder & Louis J. Maccini, 1991. "Taking Stock: A Critical Assessment of Recent Research on Inventories," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 73-96, Winter.
- Maccini, Louis J & Rossana, Robert J, 1984. "Joint Production, Quasi-Fixed Factors of Production, and Investement in Finished Goods Inventories," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 16(2), pages 218-36, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Xiao).
If references are entirely missing, you can add them using this form.