Shipment Frequency of Exporters and Demand Uncertainty

Gábor Békés, Lionel Fontagné, Balazs Murakozy and Vincent Vicard

No 4734, CESifo Working Paper Series from CESifo

Abstract: Firms adjust to differences in market size and demand uncertainty by changing the frequency and size of their export shipments. In our inventory model, transportation costs and optimal shipment frequency are determined on the basis of demand as well as inventory and per shipments costs. Using a cross section of monthly firm-product-destination level French export data we confirm that firms adjust on both margins for market size. In a stochastic setting, firms adjust to increased uncertainty by reducing their sales and, for a given export volume, by reducing their number of shipments and increasing their shipment size.

Keywords: gravity; transport costs; frequency of trade; inventory model; firms (search for similar items in EconPapers)
JEL-codes: D40 F12 R40 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Shipment frequency of exporters and demand uncertainty (2017)
Working Paper: Shipment frequency of exporters and demand uncertainty (2017)
Working Paper: Shipment frequency of exporters and demand uncertainty (2017)
Working Paper: Shipment frequency of exporters and demand uncertainty (2017)
Working Paper: Shipment frequency of exporters and demand uncertainty (2014)
Working Paper: Shipment Frequency of Exporters and Demand Uncertainty (2014)
Working Paper: Shipment Frequency of Exporters and Demand Uncertainty (2014)
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