We study the impact of interest rates changes on both the demand and supply of new light vehicles in an environment where consumers and manufacturers face their own interest rates. Through the estimation of a dynamic stochastic market equilibrium model, we find evidence that rate changes impact the economy through both households and manufacturers. For the impact of rate changes on price and ou...

The importance of drug as a valuable export product in the global economy becomes more clear every day. Understanding the problems of exports and factors affecting it, can be an important step to keep Iran’s position in the world markets and further export development of this product.In this study, Iranian pharmaceutical exports’ supply and demand functions were calculated using co-integration ...

the main objective of this study was to evaluate the response of consumers to changes in income and prices of chicken meat in the short run and long run. in order to achieve this goal, vector auto regression (var) and vector error correction model (vecm) have been applied to data since 1974 to 2007. impulse response function (irf) calculation indicated that past and present consumption of chick...

Milton Friedman argued that irrational traders will consistently lose money, won’t survive and, therefore, cannot influence long run equilibrium asset prices. Since his work, survival and price impact have been assumed to be the same. In this paper, we demonstrate that survival and price impact are two independent concepts. The price impact of irrational traders does not rely on their long-run ...

We study intertemporal price discrimination when consumers can store for future consumption needs. To make the problem tractable we o¤er a simple model of demand dynamics, which we estimate using market level data. Optimal pricing involves temporary price reductions that enable sellers to discriminate between price sensitive consumers, who anticipate future needs, and less price-sensitive consu...

Prices for grocery items differ across stores and time because of promotion periods. Consumers therefore have an incentive to search for the lowest price. When a product is purchased infrequently though, the hassle of checking the price on every shopping trip might outweigh the benefit of spending less. I propose a structural model for storable goods, that takes inventory holdings and search in...