On the Timing of Production Decisions in Monetary Economies

Anbarci, N.; Dutu, R.; Sun, C.-J.

doi:10.1111/iere.12359

On the Timing of Production Decisions in Monetary Economies

Anbarci, N.; Dutu, R.; Sun, C.-J.

Authors

Professor Nejat Anbarci nejat.anbarci@durham.ac.uk
Professor

R. Dutu

C.-J. Sun

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.

Citation

Anbarci, N., Dutu, R., & Sun, C. (2019). On the Timing of Production Decisions in Monetary Economies. International Economic Review, 60(1), 447-472. https://doi.org/10.1111/iere.12359

Journal Article Type	Article
Acceptance Date	Mar 29, 2018
Online Publication Date	Oct 9, 2018
Publication Date	Feb 28, 2019
Deposit Date	Aug 16, 2018
Publicly Available Date	Aug 31, 2020
Journal	International Economic Review
Print ISSN	0020-6598
Electronic ISSN	1468-2354
Publisher	Wiley
Peer Reviewed	Peer Reviewed
Volume	60
Issue	1
Pages	447-472
DOI	https://doi.org/10.1111/iere.12359
Public URL	https://durham-repository.worktribe.com/output/1322865

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Copyright Statement
This is the accepted version of the following article: Anbarci, N., Dutu, R. & Sun, C.-J. (2019). On the Timing of Production Decisions in Monetary Economies. International Economic Review 60(1): 447-472, which has been published in final form at https://doi.org/10.1111/iere.12359. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.