We analyze the effect of price caps on equilibrium production and welfare in oligopoly under demand uncertainty. We … find that high price caps always increase production and welfare as compared to the situation without price cap. Price caps … close to marginal cost may lead to zero production, depending on the nature of uncertainty. We characterize the optimal …

demand is expected to be strong, firms increase their production not only to meet their demand but also to accumulate … investment is procyclical, and (ii) production is more volatile than sales. The key intuition is that, since inventories and … demand are complements in generating sales, the optimal level of inventories is increasing in expected demand. Thus, when …

dimensions in economic production. A distinction is proposed between direct and indirect substitution. Linked to this, a … classification is offered of various types of substitutability and complementarity relationships between production factors. It is … argued that the neoclassical production function may be consistent with mass balance, but is unsuitable for a detailed and …

of industrial goods in the Brazilian economy - defined as domestic production plus imports minus exports - and report the … results. This indicator is important in view of the difficulties to obtain timely measures for industrial goods demand …, whereas supply data are comprehensive and diversified. Departing from the principle of supply and demand equilibrium, the …