Inventories Under Joint Production: An Empirical Analysis Of Petroleum Refining

Timothy J. Considine

The Review of Economics and Statistics, 2000, vol. 79, issue 3, 493-502

Abstract: This study examines the determinants of inventory investment under joint production. We simultaneously estimate a set of optimal sales relations, variable input demands, and a set of Euler equations for capital and inventories of raw materials, work in process, and final products in the petroleum refining industry. The Euler conditions provide a model for the convenience yield discussed in the returns-to-storage literature. The cost savings from holding inventories and expected changes in marginal production costs are important components of the convenience yield. We also find significant cost and stock interactions that may affect short-run price and inventory dynamics in petroleum product markets. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 2000
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/003465300556904 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tpr:restat:v:79:y:2000:i:3:p:493-502

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().