On the Timing of Production Decisions in Monetary Economies

Nejat Anbarci (), Richard Dutu and Ching-jen Sun

MPRA Paper from University Library of Munich, Germany

Abstract: In most macroeconomic models inflation tends to be harmful. In this paper we show that by simply changing the timing of production decisions by firms from “on demand” to “in advance”, some inflation can boost welfare as long as goods are sufficiently perishable. The main conclusion from this research is that by effectively hiding the strategic interaction between supply and demand, assuming production on demand is not without loss of generality.

Keywords: Timing; Perishability; Production; Money; Inflation; Search. (search for similar items in EconPapers)
JEL-codes: C7 D2 E4 (search for similar items in EconPapers)
Date: 2016-07-19
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/72876/1/MPRA_paper_72876.pdf original version (application/pdf)

Related works:
Journal Article: ON THE TIMING OF PRODUCTION DECISIONS IN MONETARY ECONOMIES (2019)
Working Paper: On the Timing of Production Decisions in Monetary Economies (2019)
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:pra:mprapa:72876

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().