Macrosystems are systems in which the stochastic behaviour of the elements is transformed into deterministic behaviour of the system as a whole. This publication discusses equilibrium in these systems. Mathematical models of stationary states using the principle of maximum entropy are presented. Thi
The Rational Expectations Equilibrium Inventory Model: Theory and Applications
β Scribed by Tryphon Kollintzas (auth.), Professor Tryphon Kollintzas (eds.)
- Publisher
- Springer-Verlag New York
- Year
- 1989
- Tongue
- English
- Leaves
- 277
- Series
- Lecture Notes in Economics and Mathematical Systems 322
- Edition
- 1
- Category
- Library
No coin nor oath required. For personal study only.
β¦ Synopsis
This volume consists of six essays that develop and/or apply "rational expectations equilibrium inventory models" to study the time series behavior of production, sales, prices, and inventories at the industry level. By "rational expectations equilibrium inventory model" I mean the extension of the inventory model of Holt, Modigliani, Muth, and Simon (1960) to account for: (i) discounting, (ii) infinite horizon planning, (iii) observed and unobserved by the "econometrician" stochastic shocks in the production, factor adjustment, storage, and backorders management processes of firms, as well as in the demand they face for their products; and (iv) rational expectations. As is well known according to the Holt et al. model firms hold inventories in order to: (a) smooth production, (b) smooth production changes, and (c) avoid stockouts. Following the work of Zabel (1972), Maccini (1976), Reagan (1982), and Reagan and Weitzman (1982), Blinder (1982) laid the foundations of the rational expectations equilibrium inventory model. To the three reasons for holding inventories in the model of Holt et al. was added (d) optimal pricing. Moreover, the popular "accelerator" or "partial adjustment" inventory behavior equation of Lovell (1961) received its microfoundations and thus overcame the "Lucas critique of econometric modelling.
β¦ Table of Contents
Front Matter....Pages I-XI
The Linear Rational Expectations Equilibrium Inventory Model: An Introduction....Pages 1-32
Inventories and Price Fluctuations under Perfect Competition and Monopol....Pages 34-68
Temporal Aggregation and the Stock Adjustment Model of Inventories....Pages 70-108
A Linear Rational Expectations Equilibrium Model of the American Petroleum Industry....Pages 110-197
Seasonality, Cost Shocks, and the Production Smoothing Model of Inventories....Pages 199-244
Order Backlogs and Production Smoothing....Pages 246-269
Back Matter....Pages 270-271
β¦ Subjects
Systems Theory, Control; Calculus of Variations and Optimal Control; Optimization; Economic Theory; Organization/Planning
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