Arbeitspapier
Adjustment Costs, Inventories and Output
This paper analyzes the optimal adjustment strategy of an inventory-holding firm facing price- and quantity-adjustment costs in an inflationary environment. The model nests both the original menu-cost model that allows production to be costlessly adjusted, and the later model that includes price- and quantity-adjustment costs, but rules out inventory holdings. The firm's optimal adjustment strategy may involve stockouts. At low inflation rates, output is inversely related to the inflation rate, and the length of time demand is satisfied decreases with the absolute value of the demand elasticity, the storage cost, and the real interest rate.
- Sprache
-
Englisch
- Erschienen in
-
Series: Kiel Working Paper ; No. 1340
- Klassifikation
-
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Firm Behavior: Theory
Organization of Production
- Thema
-
Menu costs
Quantity-adjustment costs
Inventories
Output
Inflation
Produktion
Betriebliche Lagerhaltung
Anpassungskosten
Inflation
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Danziger, Leif
- Ereignis
-
Veröffentlichung
- (wer)
-
Kiel Institute for the World Economy (IfW)
- (wo)
-
Kiel
- (wann)
-
2007
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Danziger, Leif
- Kiel Institute for the World Economy (IfW)
Entstanden
- 2007
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