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Inventory Models

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  • Kenneth D. West

Abstract

Econometric aspects of recent research on inventory models are surveyed. The discussion emphasizes issues relevant to instrumental variables estimation of a first order condition of the Holt et al. (1960) linear quadratic inventory model, including choice of instruments, covariance matrix estimation, methods for testing, and implications of unit root nonstationarity. The paper also briefly discusses estimation of a decision rule implied by the model, and, finally, the impliations for inventory models of some stylized facts about inventories.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0143.

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Date of creation: Sep 1993
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Publication status: published as Pesaran, M. and M. Wickens (eds.) Handbook of Applied Econometrics - Volume 1 (Macroeconomics), Oxford: Basil Blackwell, 1995.
Handle: RePEc:nbr:nberte:0143

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  1. Whitney K. Newey & Kenneth D. West, 1986. "A Simple, Positive Semi-Definite, Heteroskedasticity and AutocorrelationConsistent Covariance Matrix," NBER Technical Working Papers 0055, National Bureau of Economic Research, Inc.
  2. James H. Stock & Kenneth D. West, 1988. "Integrated Regressors and Tests of the Permanent Income Hypothesis," NBER Working Papers 2359, National Bureau of Economic Research, Inc.
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  6. Kenneth D. West, 1986. "Full Versus Limited Information Estimation of a Rational Expectations Model: Some Numerical Comparisons," NBER Technical Working Papers 0054, National Bureau of Economic Research, Inc.
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  42. repec:att:wimass:9114 is not listed on IDEAS
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Citations

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Cited by:
  1. Louis J. Maccini & Bartholomew J. Moore & Huntley Schaller, 2004. "The Interest Rate, Learning, and Inventory Investment," American Economic Review, American Economic Association, vol. 94(5), pages 1303-1327, December.
  2. Kenneth D. West & David W. Wilcox, 1993. "Some Evidence on Finite Sample Behavior of an Instrumental Variables Estimator of the Linear Quadtratic Inventory Model," NBER Technical Working Papers 0139, National Bureau of Economic Research, Inc.
  3. Craig Burnside & Martin Eichenbaum, 1994. "Small sample properties of generalized method of moments based Wald tests," Working Paper Series, Macroeconomic Issues 94-12, Federal Reserve Bank of Chicago.
  4. Brad R Humphreys & Louis J Maccini & Scott Schuh, 1997. "Input and Output Inventories," Economics Working Paper Archive 391, The Johns Hopkins University,Department of Economics.
  5. Scott Schuh, 1996. "Evidence on the link between firm-level and aggregate inventory behavior," Finance and Economics Discussion Series 96-46, Board of Governors of the Federal Reserve System (U.S.).
  6. West, Kenneth D & Wilcox, David W, 1996. "A Comparison of Alternative Instrumental Variables Estimators of a Dynamic Linear Model," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(3), pages 281-93, July.
  7. John D Tsoukalas, 2005. "Modelling manufacturing inventories," Bank of England working papers 284, Bank of England.
  8. Durlauf, Steven N. & Maccini, Louis J., 1995. "Measuring noise in inventory models," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 65-89, August.
  9. Ian Small, 2000. "Inventory investment and cash flow," Bank of England working papers 112, Bank of England.
  10. Peeters, H.M.M., 1997. "The (mis-)specification of production costs in production smoothing models," MPRA Paper 28716, University Library of Munich, Germany.
  11. Bivin, David G., 1996. "Bunching in the production process," Economics Letters, Elsevier, vol. 50(2), pages 259-263, February.
  12. SaangJoon Baak, 2000. "Heterogeneous Expectations, Volatility and Welfare," Working Papers EMS_2000_01, Research Institute, International University of Japan.
  13. David Bivin, 2005. "Gauging the performance of the linear-quadratic inventory model," Applied Economics, Taylor & Francis Journals, vol. 37(11), pages 1215-1231.
  14. Gerhard Fenz & Martin Spitzer, 2005. "AQM – The Austrian Quarterly Model of the Oesterreichische Nationalbank," Working Papers 104, Oesterreichische Nationalbank (Austrian Central Bank).
  15. Stephen G. Cecchetti & Anil K Kashyap & David W. Wilcox, 1995. "Do Firms Smooth the Seasonal in Production in a Boom? Theory and Evidence," NBER Working Papers 5011, National Bureau of Economic Research, Inc.

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