Inside a Modern Macroeconometric Model pp 207-212 | Cite as
Inventory Investment in ‘Commodity’ Exports
Chapter
Abstract
The notation in this section is generic; it is made specific in its applications below to inventory investment in the exportable ‘commodity’ (whose production level is Xc), and later in Chapter 19 to inventory investment in the domestic good (whose output is YD). for current purposes, define
where Fs > 0 implies a build up, and Fs < 0 a run down. Under the assumption that physical depreciation/deterioration is negligible, the identity linking inventory investment Fs to stocks is
, where S(t) is the outgoing stock at the end of quarter t, and Fs(t) is the flow during that quarter.
$$S = Stock\;of\;inventories\;at\;the\;end\;of\;the\;current\;quarter;$$
(17.1.1a)
$${F_S} = flow\;of\;inventories\;during\;the\;current\;quarter;$$
(17.1.1b)
$${F_S}(t) + S(t - 1) = S(t)$$
(17.1.2)
Keywords
Rainfall Index Commodity Export Inventory Investment Climatic Condition Variable Natural Growth Rate
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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References
- 17.Murphy (1992a), p. II—33 (04/05/92).Google Scholar
- 18.Ibid., p. II—34 (04/05/92).Google Scholar
- 19.Murphy (1992a), p. II—35 (04/05/92).Google Scholar
- 20.Keep in mind that the ’current value of the rainfall index is an indicator of lagged rainfall conditions relevant to output in the current period.Google Scholar
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© Springer-Verlag Berlin Heidelberg 1995