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Cash burns : An inventory model with a cash-credit choice

Alvarez, Fernando - 2015

We present a model that characterizes the relationship between optimal dynamic cash management and the choice of the means of payment. The novel feature of the model is the sequential nature of the payments choice: in each instant the agent can choose to pay with either cash or credit. This...

Persistent link: https://www.econbiz.de/10012457556

Inventories

Ramey, Valerie A. - 1997

We review and interpret recent work on inventories, emphasizing empirical and business cycle aspects. We begin by documenting two empirical regularities about inventories. The first is the well-known one that inventories move procyclically. The second is that inventory movements are quite...

Persistent link: https://www.econbiz.de/10012472499

Measuring Noise in Inventory Models

Durlauf, Steven N. - 1993

This paper has two purposes. One is to assess different models of inventory behavior in terms of their ability to well approximate the realized data on inventories. We do this initially for the pure production smoothing model and then for a sequence of generalizations of the model. Our analysis...

Persistent link: https://www.econbiz.de/10012474458

Optimal Price and Inventory Adjustment in an Open-Economy Model of the Business Cycle

Flood, Robert P. - 1983

This paper develops an open-economy macroeconomic model which can be used to interpret the observed fluctuations in output, inventories,prices,and exchange rates in the medium-sized economies of the world. The model is consistent with the major empirical regularities that have been discovered in...

Persistent link: https://www.econbiz.de/10012478013

You Only Die Once : Managing Discrete Interdependent Risks

Heal, Geoffrey - 2003

discrete interdependent risks with heterogeneous agents. There is a threat of an event that can only happen once, and the risk … depends on actions taken by others. Any agent's incentive to invest in managing the risk depends on the actions of others …. Security problems at airlines and in computer networks come into this category, as do problems of risk management in …

Persistent link: https://www.econbiz.de/10012468812

Trading on Sunspots

Jovanovic, Boyan - 2014

In a model with multiple Pareto-ranked equilibria we add trade in assets that pay based on the realization of a sunspot. Asset trading restricts the equilibrium set in a way that raises welfare by eliminating equilibria with a high likelihood of disasters. When the probability of a disaster is...

Persistent link: https://www.econbiz.de/10012457853

Voluntary Public Goods Provision, Coalition Formation, and Uncertainty

Burger, Nicholas E. - 2009

The literature on voluntary provision of public goods includes recent theoretical work on the formation of voluntary coalitions to provide public goods. Theory is ambiguous on the equilibrium coalition size and contribution rates. We examine the emergence of coalitions, their size, and how...

Persistent link: https://www.econbiz.de/10012463106

Conflict and Deterrence under Strategic Risk

Chassang, Sylvain - 2008

obtained in a complete information setting, where coordination is easy, to those obtained in a setting with strategic risk … deterrent effect under complete information, this does not hold anymore under strategic risk. Rather, we find that increases in … weapon stocks can have a non-monotonic effect on the sustainability of peace. We also show that under strategic risk …

Persistent link: https://www.econbiz.de/10012464685

Modeling Inventories Over the Business Cycle

Khan, Aubhik - 2004

We search for useful models of aggregate fluctuations with inventories. We focus exclusively on dynamic stochastic general equilibrium models that endogenously give rise to inventory investment and evaluate two leading candidates: the (S,s) model and the stockout avoidance model. Each model is...

Persistent link: https://www.econbiz.de/10012468041

The Demand of Liquid Assets with Uncertain Lumpy Expenditures

Alvarez, Fernando - 2012

We consider an inventory model for a liquid asset where the per-period net expenditures have two components: one that is frequent and small and another that is infrequent and large. We give a theoretical characterization of the optimal management of liquid asset as well as of the implied...

Persistent link: https://www.econbiz.de/10012460508