| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP1717 |
| DP1717 Minimum Price Variations, Time Priority and Quote Dynamics | |
| Tito Cordella; Thierry Foucault | |
| 发表日期 | 1997-10-31 |
| 出版年 | 1997 |
| 语种 | 英语 |
| 摘要 | In this paper we present estimates of inventory models based on firm level panel data and investigate whether an over-simplified specification of the production technology may account for the failure to find technological incentives to smooth production in the context of the standard linear-quadratic model of inventory behaviour. In particular, we argue that if the role of quasi-fixed factors is not modelled properly, this may lead to inconsistent estimates of marginal costs and, therefore, to erroneous conclusions about the convexity/concavity of the cost function. The model is accordingly extended to allow for a general restricted quadratic cost function, on the assumption that capital is costly to adjust. The evidence obtained by estimating the standard inventory model on a panel of Italian manufacturing firms suggests that marginal costs are decreasing. This result is overturned when one allows for the general quadratic cost function with capital as a quasi-fixed input, however, implying that the firm?s technology provides incentives to smooth production. The conclusion that the cost function is convex in output is robust to allowing for adjustment costs for both capital and labour. |
| 主题 | International Macroeconomics |
| 关键词 | Cost function Inventories Production smoothing |
| URL | https://cepr.org/publications/dp1717 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/530860 |
| 推荐引用方式 GB/T 7714 | Tito Cordella,Thierry Foucault. DP1717 Minimum Price Variations, Time Priority and Quote Dynamics. 1997. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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