The Linear Rational Expectations Equilibrium Inventory Model: An Introduction

  • Tryphon Kollintzas
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 322)


This paper intends to serve as an introduction to the other papers in this volume. It develops a linear rational expectations equilibrium version of the Holt et al (1960) inventory model. The necessary conditions and the sufficient conditions for a solution are derived and the stability, cycling, and comparative dynamics properties of the solution are investigated.


Equilibrium Problem Rational Expectation Adjustment Cost Transversality Condition Demand Shock 
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Copyright information

© Springer-Verlag, New York, Inc. 1989

Authors and Affiliations

  • Tryphon Kollintzas
    • 1
  1. 1.University of PittsburghUSA

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