I derive a production-based asset pricing formula to infer aggregate stock market returns from macroeconomic time series when the technology is putty-clay. Capital heterogeneity leads to variation in the aggregate stock market value through a new compositional e¤ect. The asset pricing formula, which holds regardless of the stochastic discount factor, predicts that the stock market value is high...

the effective factors on the economic growth of iran during the first 5-year development plan are studied. the main characteristics of this period are that the first development plan began after the end of war during which some of the unused capacities of the war period were utilized. while the budget deficit was continued in this period the government also pursued policies such as devaluation ...

We consider a supply chain system with a risk-neutral manufacturer as the leader and a risk-averse retailer as the follower in the environment with uncertain demand. At the beginning of the game, the manufacturer makes investment on promotion effort and then the retailer decides his ordering quantity before demand realization. The analysis of equilibrium strategies of this Stackelberg game indi...

We examine the relation between inventory investment and the cost of capital in the time series and the cross section. We find consistent evidence that risk premiums, rather than real interest rates, are strongly negatively related to future inventory growth at the aggregate, industry, and firm levels. The effect is stronger for firms in industries that produce durables rather than nondurables,...

Purpose: The purpose of this paper to develop an inventory model for instantaneous deteriorating items with the consideration of the facts that the deterioration rate can be controlled by using the preservation technology (PT) and the holding cost & demand rate both are linear function of time which was treated as constant in most of the deteriorating inventory model. Design/methodology/approac...

Conventional wisdom has it that inventory investment destabilizes the economy because it is procyclical to sales. Khan and Thomas (2007) show that the conventional wisdom is wrong in a general equilibrium (S,s) model with capital. We argue that their …nding is not robust— the conventional wisdom can still hold in general equilibrium if …rms can adjust output by varying the capacity utilization ...

PURPOSE This white paper addresses a burning question related to investment promotion and trade promotion synergies: Are Trade Promotion Organizations and Investment Promotion Agencies merging? In order to better understand Investment Promotion Agencies (IPAs) and if their services and goals present similarities with Trade Promotion Organizations (TPOs), this whitepaper identifies the four majo...

Greenhouse gas emissions have serious impacts on the natural environment. Therefore, the restrictions imposed on carbon emission force enterprises to take carbon emission into consideration when making production decisions. In this paper, in the context of allowing emission trading and investment of emission reduction technology, models were presented for a two-stage supply chain to analyze the...

This paper empirically examines the relation between the expected stock return and the bid-ask spread. Using the same portfolio formation method as in Amihud and Mendelson (1986) but different test methodologies, we do not find any clear reliable relation between the CAPM risk-adjusted return and the relative bid-ask spread. Our empirical results are more consistent with the conclusions of Cons...