We address the simultaneous determination of pricing and capacity investment strategies in a multi-period setting under demand uncertainty. In our model a monopolistic firm makes three decisions: capacity investment (or disinvestment), production (inventory), and price, all of which can be specified dynamically as a function of the state of the system. We analyze the optimal joint strategy and ...

the minimum wage determination is one of the most significant economic issues exerting effects on macroeconomic variables. this study provides an empirical model using var method to analyze the long run relationships and short run dynamisms of factors affect general price level (with emphasis on minimum wage) during the period of 1978-2010. to examine long run relationships we used johansen-jus...

This article investigates an optimal allocation problem of assets under Gaussian state variables consisting of the risk-free rate and the multi dimensional market price of risk. The optimal portfolio consisting of a bond and several stocks is derived. The idea is that the indirect utility as a solution of a partial differential equation is expressed as a zero-coupon bond price in a different ec...

The hedonic price literature suggests that locations with more favourable characteristics should display compensating wage and house price differentials. Estimates of the marginal willingness to pay for small changes in climate variables are derived using the hedonic price technique applied to Italian data. A hedonic price model was specified in terms of January and July averages. There exists ...

In financial markets not only returns, but also waiting times between consecutive trades are random variables and it is possible to apply continuoustime random walks (CTRWs) as phenomenological models of high-frequency prices. Based on these considerations, in this extended abstract, some results are outlined which can be useful for speculative option valuation. 1 The basic mapping onto continu...

cycles fluctuations in housing investment and national economy, variation in consumers and producers behavior, deviation in allocation of economic resources, the aggravation of capital transfer in asset market, the variation of income distribution pattern and imbalance in resource and expenses are the consequences of fluctuations in housing prices. these consequences and its control and recogni...

While firms claim to be concerned with consumer reactions to price increases, these often do not cause large reductions in purchases. The model developed here fits this by letting consumers react negatively only when they become convinced that prices are unfair. This can explain price rigidity, though its implications are not identical to those of existing models of costly price adjustment. In ...

The present paper is aimed at studying the nature of the causal relationship between stock prices and macroeconomic variables in India, if any such relationship exists. For this purpose the techniques of unit– root tests, cointegration and the Granger causality test have been applied between the NSE Index ‘Nifty’ and the macroeconomic variables, viz., Real effective economic rate (REER), Foreig...

in this paper, the problem of determining the quality level, lead time for order delivery and price of a product produced by a manufacturer is considered. in this problem the demand for the product is influenced by all three decision variables: price, lead time and quality level. to formulate the demand function, a fuzzy rule base that estimates the demand value based on the three decision vari...

Recent economic geography and trade empirical studies based on monopolistic competition [Hanson, 1998; Head and Ries, 1999; Hummels, 1999], suggest high levels of trade price elasticities (between 3 and 11). However, direct estimations of price-elasticities in trade equations, using price indexes at aggregate or industry levels, usually lead to much lower values (around unity). In this paper, w...