Aggregate dynamics of lumpy agents
This 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.
|Date of creation:||1996|
|Publication status:||Published in International Journal of Production Economics, March 1999|
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