A Simple Durable Goods Model
David Levine
The Quarterly Journal of Economics, 1985, vol. 100, issue 3, 775-788
Abstract:
The durability of a good has two implications. First, it can be stored in inventories by producers. Second, if it provides a stream of services to consumers, consumers may wish to defer purchases to take advantage of price fluctuations. The most significant conclusion is that the stockpiling of demand that results when consumers defer purchases explains why the variance of output exceeds the variance of sales even if demand shocks are serially independent.
Date: 1985
References: Add references at CitEc
Citations: View citations in EconPapers (5)
Downloads: (external link)
http://hdl.handle.net/10.2307/1884378 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: A Simple Durable Goods Model (1985) 
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:oup:qjecon:v:100:y:1985:i:3:p:775-788.
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva
More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().