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in the United States. Managing these deposits is an important and complex inventory problem, for two reasons. First … deposits). Second, some inventory of such deposits is essential for banks to operate one of their core lines of business … to minimize their inventory of such deposits. In 1994, the banking industry introduced a new inventory management tool …
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"This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the...
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