This paper reconsiders the lost-sales inventory system studied by Hill (2007). The commonly assumed policy to apply to the system is a pure base-stock policy (PBSP) for which the best base stock is easily found. Hill shows that his simple delay policy (SDP) and full delay policy (FDP) perform...

We consider a continuous-review inventory model for a firm that faces deterministic demand but whose supplier experiences random supply disruptions. The supplier experiences “wet” and “dry” (operational and disrupted) periods whose durations are exponentially distributed. The firm...

We consider a perishable inventory system with bonus service for certain customers. The maximum inventory level is S. The ordering policy is (0, S) policy and the lead time is zero. The life time of each items is assumed to be exponential. Arrivals of customers follow a Poisson process with...

This paper is an in-depth treatment of an inventory control problem with perishable items. We focus on two prototypes of perishability for items that have a common shelflife and that arrive in batches with zero lead time: (i) sudden deaths due to disasters (e.g., spoilage because of extreme...

This paper studies the role of public policy to promote efficiency in human capital accumulation in the representative agent framework. Agents accumulate human capital by spending time in home study and in publicly provided schools. The individual faces an aggregate externality in the...

We examine optimal and other monetary policies in a linear-quadratic setup with a relatively general form of model uncertainty, so-called Markov jump-linear-quadratic systems extended to include forward-looking variables. The form of model uncertainty our framework encompasses includes : simple...

We show that a simple and intuitive three-parameter equation fits remarkably well the evolution of the gross domestic product (GDP) in current and constant dollars of many countries during the times of recession and recovery. We then argue that it can be used to detect shocks and discuss its...

We show that a simple and intuitive three-parameter equation fits remarkably well the evolution of the gross domestic product (GDP) in current and constant dollars of many countries during times of recession and recovery. We then argue that this equation is the response function of the economy...

No. And not only for the reason you think. In a world with multiple inefficiencies the single policy tool the central bank has control over will not undo all inefficiencies; this is well understood. We argue that the world is better characterized by multiple inefficiencies and multiple policy...