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Temporal Aggregation and the Stock Adjustment Model of Inventories

  • Lawrence J. Christiano
  • Martin Eichenbaum
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 322)

Abstract

This paper examines the quantitative importance of temporal aggregation bias in distorting parameter estimates and hypothesis tests in the production smoothing/buffer stock model of inventories. In particular, our results are consistent with the Mundlak-Zellner hypothesis that temporal aggregation bias can account for the slow speeds of adjustment typically obtained in such a model.

Keywords

Time Model Rational Expectation Discrete Time Model Continuous Time Model Temporal Aggregation 
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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Copyright information

© Springer-Verlag, New York, Inc. 1989

Authors and Affiliations

  • Lawrence J. Christiano
    • 1
    • 2
  • Martin Eichenbaum
    • 3
  1. 1.Federal Reserve Bank of MinneapolisUSA
  2. 2.NBERUSA
  3. 3.Northwestern UniversityUSA

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