Showing 1 - 10 of 1,401
This paper analyzes the stochastic inventory control problem when the demand distribution is not known. In contrast to previous Bayesian inventory models, this paper adopts a non-parametric Bayesian approach in which the firm’s prior information is characterized by a Dirichlet process prior....
Persistent link: https://www.econbiz.de/10014400239
open-end funds are priced. Alternative pricing rules (known as swing pricing) adjust funds' net asset values to pass on …, we show that swing pricing eliminates the first-mover advantage arising from the traditional pricing rule and … significantly reduces redemptions during stress periods. The positive impact of alternative pricing rules on fund flows reverses in …
Persistent link: https://www.econbiz.de/10012154553
Is it desirable that central banks be more transparent in the communication of sensible information when agents have diverse private information? In practice, there exists some consensus about the benefits of acting in this way. However, other studies warn that increasing the precision of public...
Persistent link: https://www.econbiz.de/10014402814
When the exchange rate fluctuates and the market exhibits hysteresis, planning horizons of domestic and foreign competitors will matter in determining pass-through as well as relative market shares of these firms. Using the Cournot duopoly model, it is shown that if the foreign exporter is a...
Persistent link: https://www.econbiz.de/10014396230
with firms setting pricing policies instead of price levels. In response to permanent or highly persistent monetary policy … shocks mostly through a change in the long-run or inflation updating component of their pricing policies. With staggered … pricing policies there is a time lag before this is reflected in aggregate inflation …
Persistent link: https://www.econbiz.de/10014403827
depreciation and with quality, leading to more pricing-to-market and to a smaller response of export volumes to a real depreciation … for higher quality goods. We test the proposed theory using a highly disaggregated Argentinean firm-level wine export …
Persistent link: https://www.econbiz.de/10014411197
Reconciling the high frequency of price changes at the micro level and their apparent rigidity at the aggregate level has been the subject of considerable debate in macroeconomics recently. In this paper I show that incorporating production chains in a standard New- Keynesian model replicates...
Persistent link: https://www.econbiz.de/10014402879
This paper investigates the consequences of pricing to market for exchange rate pass-through and real exchange rate … destination-specific adjustment compared to intersectoral trade. With both trade patterns, pricing-to-market behavior intensifies …
Persistent link: https://www.econbiz.de/10014398714
In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating the flexible price equilibrium. We develop a two-sector two-good new-Keynesian model to study the optimal choice of price index in markets with financial frictions. We find that,...
Persistent link: https://www.econbiz.de/10014397170
The optimal provision of loan guarantees or deposit insurance is examined in the context of an overlapping generations model. It is demonstrated that even in the face of a market imperfection that precludes diversification of the private sector’s loan portfolio to eliminate risk, full...
Persistent link: https://www.econbiz.de/10014395814