IDEAS home Printed from https://ideas.repec.org/a/cup/agrerw/v23y1994i01p1-10_00.html
   My bibliography  Save this article

An Adaptive Model of Perishable Inventory Dissipation in a Nonstationary Price Environment

Author

Listed:
  • Vukina, Tomislav
  • Anderson, James L.

Abstract

The paper develops an adaptive model of perishable commodity dissipation based on the individual's price expectations and risk perception. A two-step, state-space procedure for modeling nonstationary time series is presented. The method combines an impulse response model for estimating deterministic components with an innovations model for the remaining stationary stochastic noise. Combined parameters are used to generate forecasts and to derive a measure of risk in a nonstationary price environment. Defined as the variance (covariance) of out-of-sample forecast error, the measure of risk is the difference between the historical estimate of the stationary noise auto-covariance and the variance (covariance) of out-of-sample forecasts. The optimal marketing strategy for a hypothetical salmon processor who sells to Japanese wholesalers is developed to illustrate the model. The solution is obtained using quadratic programming algorithm.

Suggested Citation

  • Vukina, Tomislav & Anderson, James L., 1994. "An Adaptive Model of Perishable Inventory Dissipation in a Nonstationary Price Environment," Agricultural and Resource Economics Review, Cambridge University Press, vol. 23(1), pages 1-10, April.
    • Handle: RePEc:cup:agrerw:v:23:y:1994:i:01:p:1-10_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1068280500000356/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Vaccaro, Richard J. & Vukina, Tomislav, 1993. "A solution to the positivity problem in the state-space approach to modeling vector-valued time series," Journal of Economic Dynamics and Control, Elsevier, vol. 17(3), pages 401-421, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:agrerw:v:23:y:1994:i:01:p:1-10_00. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/age .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.