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- W1966221361 abstract "Abstract This paper extends the static analysis of Nikaido (1974) and the temporary equilibrium analysis of Day-Fan (1980) to a full disequilibrium analysis by introducing inventories explicitly into the Keynes-Kaldor-Nakaido framework. Two different inventory adjustment processes are considered. The first is based on the micro behavioral assumption that each producer coordinates his safes, production and inventory departments so that inventories can be adjusted to the desired level through intra-firm shipments. The second follows the traditional approach of treating inventories as part of investment demand. Coupled with the two behavioral rules of price-output determination, namely full-cost pricing and perceived profit maximization four models are generated. These models are studied for their dynamic behaviors in disequilibrium. It is found that the adjustment trajectories of both the full-cost pricing and perceived profit maximization models with intra-firm inventory adjustments exhibit damped cycles, whereas those of both models with inventories treated as investment demand are inherently unstable." @default.
- W1966221361 created "2016-06-24" @default.
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- W1966221361 date "1981-09-01" @default.
- W1966221361 modified "2023-09-27" @default.
- W1966221361 title "Behavioral rules, inventory adjustments and the stability of macroequilibria" @default.
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- W1966221361 doi "https://doi.org/10.1016/0167-2681(81)90021-4" @default.
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