Imperfect Markets and Commodity Prices Under Demand Pull
Authors: not saved
Abstract:
This paper presents a theoretical view of imperfect market. It concludes that an increase in the price of products does not give any incentive to increasing production which shows the mechanism for upward trends in prices.
similar resources
imperfect markets and commodity prices under demand pull
this paper presents a theoretical view of imperfect market. it concludes that an increase in the price of products does not give any incentive to increasing production which shows the mechanism for upward trends in prices.
full textEquilibrium Model for Commodity Prices: Competitive and Monopolistic Markets∗
In this article, we develop an equilibrium model for storable commodity prices. The model is formulated as a stochastic dynamic control problem and considers two state variables the exogenous supply and the inventory. The inventory is a fully controllable endogenous variable. We assume that the uncertainty arises from the supply, which evolves as a Ornstein-Uhlenbeck stochastic process. This mo...
full textMonetary Policy and Asset Prices with Imperfect Credit Markets
prices? As it stands, the theorem provides an important benchmark and enforces careful thinking about financial markets’ workings and the imperfections that would create a world where a firm’s financial position (hence equity prices) affects its ability to engage in production. Many possible imperfections could generate such a world. This article focuses on failures of information. Suppose that...
full textEquilibrium Asset Prices under Imperfect Corporate Control
Shareholders have imperfect control over the decisions of the management of a firm. We integrate a widely accepted version of the separation of owership and control — Jensen’s (1986) free cash flow theory — into a dynamic equilibrium model and study the effect of imperfect corporate control on asset prices and investment. We assume that firms are run by empire-building managers who prefer to in...
full textEquity and Efficiency under Imperfect Credit Markets
Recent macroeconomic research discusses credit market imperfections as a key channel through which inequality retards growth. Limited borrowing prevents the less affluent individuals from investing the efficient amount, and the inefficiencies are considered to become stronger as inequality rises. This paper, though, argues that higher inequality may actually boost aggregate output even with con...
full textCommodity Prices and Growth∗
In this paper we propose an endogenous growth model of commodity-rich economies in which: (i) long-run (steady-state) growth is endogenous and yet independent of commodity prices; (ii) commodity prices affect short-run growth through transitional dynamics; and (iii) the status of net commodity importer/exporter is endogenous. We argue that these predictions are consistent with historical eviden...
full textMy Resources
Journal title
volume 5 issue 5
pages 17- 23
publication date 2001-04-01
By following a journal you will be notified via email when a new issue of this journal is published.
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023