IDEAS home Printed from https://ideas.repec.org/h/pal/psachp/978-3-030-73144-1_10.html
   My bibliography  Save this book chapter

Dynamic Models of the Firm

In: Market Interrelationships and Applied Demand Analysis

Author

Listed:
  • Michael K. Wohlgenant

    (North Carolina State University)

Abstract

Dynamic models of the firm applied to market intermediary behavior are reviewed and formulated. An important input that we have ignored so far is capital. Different models applicable to modeling capital, with special reference to agricultural models, are presented and discussed in this chapter. Both single capital input and multi-variate adjustment cost models are presented. The linkage between quasi-fixed inputs and raw material demand is highlighted. Inventories can be a source of dynamic adjustment of the firm. Dynamic inventory models are formulated to show how lagged inventory adjustment can lead to lagged adjustment in prices and input demands. I discuss some ways in which this model can be modified and extended for other applications. Expectations and lagged inventories through adjustment costs are shown to be significant factors in dynamic adjustment. Different models for expectations formation are presented, and the dynamic inventory model is specified for quasi-rational expectations. Other, mostly empirical approaches to modeling dynamic input demand behavior are also discussed.

Suggested Citation

  • Michael K. Wohlgenant, 2021. "Dynamic Models of the Firm," Palgrave Studies in Agricultural Economics and Food Policy, in: Market Interrelationships and Applied Demand Analysis, chapter 0, pages 191-211, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-3-030-73144-1_10
    DOI: 10.1007/978-3-030-73144-1_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:pal:psachp:978-3-030-73144-1_10. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    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.