the importance of managerial ability on crude oil price uncertainty firm performance relationship abstract this paper investigates the effect of crude oil price uncertainty on firm performance and how the managerial ability impacts on this relationship using a large sample of 13 610 u s firms from 1983 to 2016 we reveal two main findings consistent with our hypothesis we find strong evidence for a negative effect of crude oil price uncertainty on firm performance at both aggregate market and sectoral levels however managerial ability helps firms dampen a significant proportion approximately 20 50 of the negative effect these findings are consistent in several robustness tests

small firms and the merger mania empirical research has found an average or even superior performance of small firms this seems to be at variance with the secular concentration process and the recurrent merger waves this paper tries to integrate size and merger research higher profitability of small firms is explained by their incentive structure and shorter decision lags but also by lower wages and higher individual risk premia their faster growth in the eighties was in addition fostered by diversification of demand miniaturization of technology and a need for flexibility under uncertainty the merger wave on the other hand does not necessarily prove that large firms are superior managers and shareholders may be seduced by stockmarket optimism a sizeable industry of banks agents and lawyers have their own interests in mergers mergers may be important in declining markets and for the acquisition of technology on average mergers do not improve efficiency profits or internal growth small and large firms serve different purposes performance depends on the market incentives and technology the establishment growth and closure of small firms as well as mergers are attempts to find the optimal organization for utility maximization in a world of severe uncertainty and diverse needs

optimal production lot with imperfect production process under permissible delay in payments and complete backlogging abstract the traditional economic production quantity epq model assumes that the production products are all perfect it is not always true in the real production system due to imperfect production process or other factors imperfect quality items may be produced furthermore it is well known that the total production inventory costs can be reduced by reworking the imperfect quality items produced with a relatively smaller additional reworking and holding costs in addition the permissible delay in payments offered by the supplier is widely adopted in the practical business market in this study we explore the effects of the reworking imperfect quality items and trade credit on the epq model with imperfect production processes and complete backlogging a mathematical model which includes the reworking and shortage costs interest earned and interest charged is presented besides an arithmetic geometric mean inequality approach is employed and an algorithm is developed to find the optimal production policy furthermore some numerical examples and sensitivity analysis are provided to demonstrate the proposed model

the optimal ordering policy in a dcf analysis for deteriorating items when trade credit depends on the order quantity abstract in this paper an inventory system for deteriorating items under the conditions of using the discounted cash flows dcf approach to the permissible to delay payment will be considered as a matter of fact the supplier usually is willing to provide the retailer a permissible delay of payments if the retailer orders a large quantity as a result we consider that the delay in payments depends on the quantity ordered that is when the order quantity is less than that at which the delay in payments is permitted the payment for the item must be made immediately otherwise the fixed trade credit period is permitted this paper incorporates all concepts of a dcf approach and the trade credit linked to ordering quantity and develops a new inventory model for deteriorating items to generalize jaggi and aggarwal int j prod econ 34 1994 151

inventory and credit decisions for time varying deteriorating items with up stream and down stream trade credit financing by discounted cash flow analysis abstract in today s competitive markets most firms in united kingdom and united states offer their products on trade credit to stimulate sales and reduce inventory trade credit is calculated based on time value of money on the purchase cost i e discounted cash flow analysis recently many researchers use discounted cash flow analysis only on the purchase cost but not on the revenue which is significantly larger than the purchase cost and the other costs for a sound and rigorous analysis we should use discounted cash flow analysis on revenue and costs in addition expiration date for a deteriorating item e g bread milk and meat is an important factor in consumer s purchase decision however little attention has been paid to the effect of expiration date hence in this paper we establish a supplier retailer customer supply chain model in which a the retailer receives an up stream trade credit from the supplier while grants a down stream trade credit to customers b the deterioration rate is non decreasing over time and near 100 percent particularly close to its expiration date and c discounted cash flow analysis is adopted for calculating all relevant factors revenue and costs the proposed model is an extension of more than 20 previous papers we then demonstrate that the retailer s optimal credit period and cycle time not only exist but also are unique thus the search of the optimal solution reduces to a local one finally we run several numerical examples to illustrate the problem and gain managerial insights

credit financing in economic ordering policies of deteriorating items this paper presents the economic ordering policies of deteriorating items in the presence of trade credit using a discounted cash flows dcf approach a dcf approach permits a proper recognition of the financial implication of the opportunity cost and out of pocket costs in inventory analysis it also permits an explicit recognition of the exact timing of cash flows associated with an inventory system a comprehensive sensitivity analysis has also been done

asymmetric effects of oil price uncertainty on corporate investment abstract using a comprehensive data set of a large panel of us firms over 1984 2017 we show that the negative effect of crude oil price return uncertainty on investments is asymmetric in particular we show that investment is more significantly reduced following the volatility of positive oil price changes than that of negative changes and this asymmetric effect is more pronounced in small firms in addition we find that the asymmetric effect is stronger in the crude oil and gas producing companies where the effect of the volatility of negative oil price changes is greater than that of positive oil price changes we also find that the impact of positive or negative oil price change uncertainty on investments substantially differs across different industries the results are quite robust to the way in which we measure the investment and oil price uncertainty and to alternative regression methods

oil prices and the stock prices of alternative energy companies energy security issues coupled with increased concern over the natural environment are driving factors behind oil price movements while it is widely accepted that rising oil prices are good for the financial performance of alternative energy companies there has been relatively little statistical work done to measure just how sensitive the financial performance of alternative energy companies are to changes in oil prices in this paper a four variable vector autoregression model is developed and estimated in order to investigate the empirical relationship between alternative energy stock prices technology stock prices oil prices and interest rates our results show technology stock prices and oil prices each individually granger cause the stock prices of alternative energy companies simulation results show that a shock to technology stock prices has a larger impact on alternative energy stock prices than does a shock to oil prices these results should be of use to investors managers and policy makers

how do u s stock returns respond differently to oil price shocks pre crisis within the financial crisis and post crisis abstract we use a long time series of daily data for 682 firms over a period from january 1990 to december 2012 each firm includes 5 772 daily observations our sample involves a total of 3 936 504 observations to investigate how u s stock returns respond differently to oil price shocks prior to during and after a financial crisis we provide evidence that u s stock returns in turn respond positively to the changes in oil prices during and after such a crisis we use firm level data to find that positive and negative oil price shocks have asymmetric effects on stock returns during the crisis and after the crisis then we examine whether the effect of an oil price shock on stock returns varies across oil intensive industries within the crisis and post crisis our results indicate that stock returns in response to oil price shocks across industries are heterogeneous and the stock returns of some energy intensive manufacturing industries respond more positively to oil price shocks compared with less energy intensive manufacturing industries we use total assets total revenue and the number of employees as proxy variables to measure each firm s size and then examine whether oil price shocks affect stock returns differently across firm sizes we find that big firms are the most strongly and negatively influenced by an oil price shock prior to the crisis on the other hand our results indicate that an oil price shock in the post financial crisis period is positively amplified in the case of medium sized firms

network infrastructure spillover in private productive sectors evidence from spanish high capacity roads interest in public infrastructure research has been a subject of increasing concern to economists and policy makers this article aims at analysing the locational impact of the high capacity roads hcr on the spanish private economic activity from 1970 through 1998 given that this is one of main infrastructure based development strategy undertaken in spain in this period in a stochastic frontier production function framework we allow for modelling of provincial heterogeneity through the existence of different efficiency levels in the territorial units results show hcr spillovers between geographically close provinces and between provinces displaying similar socio demographic characteristics and government size to the extent that the magnitude and sign of these impacts differ across sectors a reasonable explanation of the limited impact of hcr on aggregate private production could be made the presence of a negative spillover effect in the industrial and business service sector suggests that spanish

institutions infrastructure and economic growth abstract this paper develops a structural model of infrastructure and output growth that takes account of institutional and economic factors that mediate in the infrastructure gdp interactions cross country estimates of the model indicate that the contribution of infrastructure services to gdp is substantial and in general exceeds the cost of provision of those services the results also shed light on the factors that shape a country s response to its infrastructure needs and offer policy implications for facilitating the removal of infrastructure inadequacies

relative energy price and investment by european firms abstract a dynamic model of investment is estimated with data on non financial firms in 15 european countries across 25 industries over 1991 2006 a rise in real energy price reduces the degree of persistence in the investment adjustment cost function panel results suggest that in manufacturing a 1 rise in real energy price reduces investment by a country s firms by 1 9 relative to that by firms in other countries with a smaller effect for non manufacturing firms the negative effect of a higher relative price of energy on firm level investment is significantly less marked the larger the firm results imply that stabilizing the relative price of energy would steady firm investment with greater gains in stability at smaller and medium sized firms results are robust to consideration of country business cycle effect and firm leverage estimation of investment is based on the euler equation approach with over 21 000 observations individual country regressions imply that a rise in the relative price of energy price has a statistically significant negative effect on firm level investment in 14 out of 15 countries to avoid dynamic panel bias estimation is by generalized method of moments with instrumental variables

the robustness of the causal and economic relationship between construction flows and economic growth evidence from western europe our main objective is to analyse whether we have a problem of parameter heterogeneity across countries and over time in the estimation of the relationship between infrastructure investments and eco

a review of trade credit literature opportunities for research in operations abstract trade credit arises when a buyer delays payment for purchased goods or services its nature has predominantly been an area of inquiry for researchers from the disciplines of finance marketing and economics but it has received relatively little attention in other domains in our article we provide an integrative review of the existing literature and discuss conflicting study outcomes we organize the relevant literature into seven areas of inquiry and analyze four in detail trade credit motives order quantity decisions credit term decisions and settlement period decisions additionally we derive a detailed agenda for future research in these areas

a production lot size inventory model for deteriorating items and arbitrary production and demand rates abstract in this paper we present a method for finding the optimal replenishment schedule for the production lot size model with deteriorating items where demand and production are allowed to vary with time in an arbitrary way and in which shortages are allowed the method is illustrated by a numerical example

optimal strategy for an integrated system with variable production rate when the freight rate and trade credit are both linked to the order quantity abstract this paper presents an integrated inventory model with variable production rate and price sensitive demand rate the buyer s purchases trade credit linked to the order quantity offered by the supplier in addition the buyer pays the freight charge according to a weight schedule this paper attempts to offer a best policy that aims at maximizing the joint total profit while the trade credit and freight rate are simultaneously linked to the order quantity the same policy also incorporates considerations on the optimal retail price order quantity and delivery decision we provide possible solutions for the buyer and the supplier to collaboratively agree on inventory control warehouse management transportation logistics delivery and billing our study demonstrates that significant profit increase for the entire supply chain can be achieved by linking both trade credit policy and freight rate policy to order quantities an algorithm is furnished to determine the optimal solution in addition numerical examples and sensitivity analysis are presented to illustrate the theoretical results

the role of energy in real business cycle models abstract this paper modifies hansen s 1985 analysis of a real business cycle mode with indivisible labor by explicitly including energy as a productive input and modelling the relative price of energy as an exogenous random process one goal is to determine the extent to which the introduction of energy price shocks reduces the reliance of the real business cycle model on unobserved technology shocks the other goal following christiano and eichenbaum 1991 is to compare the correlation between real wages and hours predicted by the energy inclusive model to that predicted by hansen s model

an eoq model with partial backordering and advance payments for an evaporating item abstract in the classic economic order quantity model the purchasing cost of an order is paid at the time of its receipt in some cases retailers ask purchasers to pay all or a fraction of the purchasing cost in advance and may allow them to divide the prepayment into several equal sized parts in this paper an economic order quantity model for an evaporating item with partial backordering and partial consecutive prepayments is developed with a real case study of a gasoline station real numerical examples illustrate the proposed model and the solution method

drawing inferences about housing supply elasticity from house price responses to income shocks abstract the purpose of this paper is to provide information about the price elasticity of the supply of housing i examine the relationship between the average price of single family housing and the amount of personal income a two equation vector error correction system is estimated using a panel data set consisting of 76 msas from 1980 to 1998 the results suggest an elastic long run supply function but a relatively slow pace of adjustment to long run equilibrium hence a major demand shock can be expected to impact housing prices for several years following the shock differences in the responsiveness among subgroups of msas are examined and found to be generally minor

purchasing power parity and country characteristics evidence from panel data tests abstract we examine long run purchasing power parity ppp using panel data methods to test for unit roots in us dollar real exchange rates of 84 countries we find stronger evidence of ppp in countries more open to trade closer to the united states with lower inflation and moderate nominal exchange rate volatility and with similar economic growth rates as the united states we also show that ppp holds for panels of european and latin american countries but not for african and asian countries our findings demonstrate that country characteristics can help explain both adherence to and deviations from long run ppp

the effect of oil price volatility on strategic investment in this paper we investigate how oil price volatility affects the strategic investment decisions of a large panel of us firms this paper uses key insights from the real options literature to develop a model of a company s strategic investment and shows how changes in oil price volatility can impact strategic investment decisions the model is estimated using recently developed generalized method of moment estimation techniques for panel data sets empirical results are presented to show that there is a u shaped relationship between oil price volatility and firm investment this is consistent with the predictions from the strategic growth options literature the results should be useful to decision makers investors managers policy makers and others who need to make strategic investment decisions in an uncertain world

do oil price shocks matter evidence for some european countries this paper analyzes the oil price macroeconomy relationship by means of analyzing the impact of oil prices on inflation and industrial production indexes for many european countries using quarterly data for the period 1960 1999 first we test for cointegration allowing for structural breaks among the variables second and in order to account for the possible non linear relationships we use different transformation of oil price data the main results suggest that oil prices have permanent effects on inflation and short run but asymmetric effects on production growth rates furthermore significant differences are found among the responses of the countries to these shocks

oil and the macroeconomy since world war ii all but one of the u s recessions since world war ii have been preceded typically with a lag of around three fourths of a year by a dramatic increase in the price of crude petroleum this does not mean that oil shocks caused these recessions evidence is presented however that even over the period 1948 72 this correlation is statistically significant and nonspurious supporting the proposition that oil shocks were a contributing factor in at least some of the u s recessions prior to 1972 by extension energy price increases may account for much of post opec macroeconomic performance

infrastructure investment a review essay economists try not to be faddists but they often cannot help themselves while work on a topic should mirror the prospective importance of the topic that situation seems to occur with disappointing frequency instead the usual pattern is that some reasonably important topic will be totally ignored for the longest time then recognized and then the subject of a flurry of work all out of proportion to its likely long run importance nowhere has this speculative bubble of economic research been more clearly illustrated than with infrastructure investment macroeconomists havelong felt that the stock of public capital is an important factor input in the production of total output macroeconomists have known that u s productivity growth slowed dramatically in about 1973 and macroeconomists should have known that united states investment in public capital has been down since the late 1960s yet analysis of the u s productivity slowdown completely ignored infrastructure investment for the first fifteen years of this slowdown concentrating instead on energy prices social regulation the composition of the work force research and development different rates of obsolescence of the private capital stock and any number of other matters the public capital stock was hardly ever even mentioned as a potential factor in the productivity slowdown aschauer changed all that he wrote a series of papers 1989a 1989b 1989c that put these two movements together econometrically infrastructure investment turned down and aggregate productivity turned down slightly later both in the united states and in some other developed countries his work hit the magic button those who had worried about the productivity puzzle for fifteen years welcomed a new suspect those who were worried about low rates of u s national saving welcomed a new way to make their argument even more forcefully than with official figures on saving and investment which do not count infrastructure investment as investment political liberals and liberal politicians saw a way to rescue government spending and projects from the assaults of reaganism and even a way to avoid oth

crude oil and the macroeconomy tests of some popular notions a note perhaps no other economic events in the post world war ii era have generated as much attention as the series of crude oil price shocks that have jolted the world economy since the opec boycott of 1973 a tremendous amount of space in the popular and professional literature has been devoted to analyzing the impacts of these shocks on the developed economies and the adjustments these shocks have induced one residual of this literature has been a general impression that since 1973 the functional relationship between crude oil prices and the developed macroeconomies has been dramatically and fundamentally altered yet to our knowledge no one has formally tested this impression recent evidence of hamilton 1983 suggests that crude oil prices had a strong impact on the u s business cycle well before 1973 further while textbook treatments of oil price shocks tend to highlight cost push inflationary effects the research of berndt and wood 1975 1979 and wilcox 1983 indicates the net complementarity between energy and capital in the u s economy is quite strong both before and after 1973 thus oil price shocks may have stronger real effects than generally believed in this paper we formally test three popular notions associated with the so called

integrating deterioration and lifetime constraints in production and supply chain planning a survey abstract items with short lifetimes that are subject to deterioration are important in the business world research has a long tradition in integrating deterioration and value loss effects into mathematical models for inventory planning and control where such effects are understood as a general loss or shrinkage of inventory however there has been little work in the modeling of lifetime restrictions of items to prevent wastage and disposals especially in a dynamic planning context globalization and other trends extend the consideration of single companies to whole supply chains implying increased coordination and information needs this is important as planning decisions impact lead times and thus the quality of items in the whole supply chain products that exceed their useful lifetime can impose high costs due to inventory loss or the need to rework them this implies increased utilization of scarce resources e g machine time metals and or energy thereby increasing co 2 levels we survey the state of the art regarding depreciation effects and the modeling of lifetime constraints as well as a classification of models following business planning functions of the value chain a critical evaluation of approaches and their limitations is provided highlighting directions for future research

time specific disturbances and cross sectional dependency in a small sample heterogeneous panel data unit root test in their seminal work im et al 1997 2003 suggested that time series for several cross sectional units could be used to increase the power of the dickey fuller unit root test they argued that when cross sectional correlation is a problem that can be modelled by a time specific factor demeaning across the cross sectional units can solve the problem in this study this proposition is proven valid but it is also shown that previously supplied standardizing moments are inappropriate when the number of cross sections are small causing size to differ from the significance level to correct this size distortion the current paper supplies response surface parameters that can be used to obtain moments that are valid when a time specific factor suffices for modelling cross sectional correlation in the heterogeneous panel data unit root framework the correct size of the panel data unit root test comes at the cost of a somewhat lower power against a stationary alternative less

game theoretic pricing and ordering decisions with partial lost sales in two stage supply chains abstract few papers have studied the optimal pricing and ordering with partial lost sales from a two stage game theoretic perspective this paper considers a supply chain game with a buyer and a seller through pricing and ordering models with partial lost sales we evaluate the optimal solutions for the buyer and the seller and provide insights into both the deterministic and stochastic demand models we also propose search algorithms to obtain the global optimum when convexity and concavity conditions are not satisfied

an eoq model with noninstantaneous receipt and exponentially deteriorating items under two level trade credit abstract this paper considers the impact of the trade credit policy on the classical economic production quantity epq model for an item subject to exponential decays essentially this study focuses on an exponentially deteriorating item under the conditions of the retailer receiving the supplier trade credit and providing the customer trade credit simultaneously so as to minimize the average total cost a theorem is developed to determine the optimal replenishment policies the main contribution to literature is the inclusion of the latter type of payment delay finally through numerical examples sensitive analysis shows the influence of key model parameters

sectoral shifts and cyclical unemployment a substantial fraction of cyclical unemployment is better characterized as fluctuations of the frictional or natural rate than as deviations from some relatively stable natural rate shifts of employment demand between sectors of the economy necessitate continuous labor reallocation since it takes time for workers to find new jobs some unemployment is unavoidable this paper presents evidence that most of the unemployment fluctuations of the seventies unlike those in the sixties were induced by unusual structural shifts within the u s economy simple time series models of layoffs and unemployment are constructed that include a measure of structural shifts within the labor market these models are estimated and a derived natural rate series is constructed

review of inventory systems with deterioration since 2001 abstract this paper presents an up to date review of the advances made in the field of inventory control of perishable items deteriorating inventory the last extensive review on this topic dates back to 2001 goyal s k and giri b c recent trends in modeling of deteriorating inventory european journal of operational research 134 1 16 since then over two hundred articles on this subject have been published in the major journals on inventory control indicating the need for a new review we use the classification of goyal and giri based on shelf life characteristics and demand characteristics contributions are highlighted by discussing main system characteristics including price discounts backordering or lost sales single or multiple items one or two warehouses single or multi echelon average cost or discounted cash flow and payment delay

imperfect competition and business cycles an empirical investigation imperfect competition and business cycles an empirical investigation does imperfect competition increase the magnitude of business cycles if so the variability of an industry s employment and output should be positively related to the market power of firms in that industry this paper demonstrates that the opposite is true u s manufacturing industries with high price cost margins display less employment variability than do low markup industries these high markup industries display less price variability as well highly concentrated industries however do display more employment variability to some degree markups may reflect labor hoarding rather than market power this may account for part but not all of the negative correlation between markups and variability i introduction recent research has investigated whether deviations from perfect competition either in goods or labor markets help explain the existence and magnitude of business cycles in particular both theoretical and empirical evidence suggests that imperfectly competitive firms hold prices more rigid in the face of demand shocks than do more competitive firms 1 this finding raises the question of whether imperfectly competitive industries also exhibit larger fluctuations in output and employment this paper examines employment and output data for 446 u s manufacturing industries over the years 1958 to 1984 if employment and output fluctuations have been smaller in more competitive industries this would suggest that imperfect competition may indeed lead to larger business cycle fluctuations in fact my results suggest the opposite industries with larger price marginal cost margins display less variability in employment and output although the output results are not robust the finding for employment is remarkably robust to a wide range of specifications in particular it holds for two different methods of estimating the price marginal cost margin in contrast i find that highly concentrated industries as opposed to those with high price marginal cost margins do display more variability in output and employment than do less concentrated industries in addition i confirm the finding of previous studies that industries with high price cost margins display less price variability thus it appears that imperfect competition may reduce variability in both prices and quantities the paper proceeds as follows section ii outlines the theoretical literature and surveys previous empirical work in this area section iii describes the methodology of the paper and section iv describes the estimation of the price marginal cost margin section v presents the results and section vi discusses possible explanations section vii concludes ii theoretical literature and previous work many theoretical models suggest that imperfectly competitive industries ought to display more cyclical variability of output than perfectly competitive industries the common thread in all these theories is real price rigidity 2 some reason is offered why an imperfectly competitive firm does not adjust its relative price in response to a demand shock as much as would a perfectly competitive firm the less prices adjust the more output and employment must adjust therefore the argument goes imperfect competition may exacerbate the size of business cycle fluctuations 3 this basic argument dates back to means 1935 prices may be relatively acyclical or even countercyclical in industries with market power for one of two reasons either marginal cost is relatively flat or markups are relatively countercyclical the following theories of real price rigidity may be classified as falling into one of these two categories firms with market power are assumed to maintain excess capacity perhaps as a barrier to entry by new firms

oil price shocks and the dispersion hypothesis recent research by david lilien shows that a significant fraction of aggregate unemployment can be explained by the dispersion of employment growth across industries this paper presents two new results in this area first it is shown that a significant fraction of the variation in lilien s dispersion index is due to the differential impact of oil shocks across industries second and more important it is shown that once the dispersion in employment growth due to oil shocks is accounted for the residual dispersion has no explanatory power for unemployment

optimal inventory policy with noninstantaneous receipt under trade credit abstract in the last two decades the models for inventory replenishment policies under trade credit have been widely studied by several researchers however the extant papers only consider the effects of permissible delay in payments in the inventory systems in some situations the supplier also may offer a cash discount to encourage retailer to pay for his purchases quickly on the other hand an inventory model with instantaneous receipt is not a common feature in actual practice for generality this study develops an inventory model with noninstantaneous receipt under trade credit in which the supplier provides not only a permissible delay but also a cash discount to the retailer we then characterize the optimal solution and provide an easy to use criterion to find the optimal order strategies finally several numerical examples are presented to illustrate the theoretical results

the viewpoint on optimal inventory policy with non instantaneous receipt under trade credit by ouyang teng chuang and chuang abstract ouyang et al 2005 international journal of production economics 98 290 300 develop an inventory model with non instantaneous receipt under trade credit in which the supplier provides not only a permissible delay but also a cash discount to the retailer they establish a criterion to find the optimal order cycle such that the total relevant cost per unit time is minimized although their inventory model is correct and interesting their solution procedure has shortcomings such that it cannot locate all optimal order cycles so the main purpose of this paper will remove the shortcoming of ouyang et al 2005 and present a solution procedure to search for the entirely optimal order cycles furthermore this paper reveals an example to show that ouyang et al s 2005 solution procedure does not work for locating the optimal order cycle to that example however our solution procedure does in sum this paper improves ouyang et al 2005

are oil shocks inflationary asymmetric and nonlinear specifications versus changes in regime this paper identifies a structural break in core u s inflation phillips curves such that oil prices contributed substantially before 1981 but since that time pass through has been negligible this characterization is robust to a variety of re specifications and fits the data better than asymmetric and nonlinear oil price alternatives evidence does not support the hypotheses that declining energy intensity or deregulation of energy producing and consuming industries played an important role monetary policy did not itself become less accommodative of oil shocks but may have helped create a regime where inflation is less sensitive to price shocks more generally

retailer s economic order quantity when the supplier offers conditionally permissible delay in payments link to order quantity abstract trade credit financing is increasingly recognized as an important strategy to increase profitability in inventory management we revisit an economic order quantity model under conditionally permissible delay in payments in which the supplier offers the retailer a fully permissible delay of m periods i e there is no interest charge until m if the retailer orders more than or equal to a predetermined quantity w however if the retailer s order quantity is less than w then the retailer must make a partial payment to the supplier and enjoy a permissible delay of m periods for the remaining balance in this paper we extend the mentioned eoq under conditionally permissible delay in payments to complement some shortcomings of the model by contrast to the differential calculus method we propose a simple arithmetic geometric method to solve the problem furthermore we establish some discrimination terms to identify the unique optimal solution among three alternatives and explain those theoretical results by simply economical interpretations finally we solve several numerical examples to illustrate the theoretical results and obtain some managerial implications

different ways of looking at old issues a time series approach to inequality and growth in this article we propose an econometric approach that steers clear of parameter heterogeneity omitted variable bias and endogeneity problems from which suffers the econometric analysis of economic growth we propose to investigate the relation between income inequality and economic growth in a cointegrated var setting and present an application to belgium us and finland

nonconvex costs and the behavior of inventories this paper explores one possible explanation for the apparent excess volatility of production relative to sales nonconvexities in the technology facing firms it is shown that if firms operate in a region of declining marginal costs then small shifts in demand can cause production to jump substantially estimates for six production to stock industries as well as the automobile industry suggest that all these industries behave as if they were operating in the region of nonconvex costs the results have important implications not only for inventory investment but also for the cyclical behavior of productivity and prices

this is what happened to the oil price macroeconomy relationship reply abstract james hamilton argues that oil price changes are still important for the macroeconomy and that using a filter which screens out drops and measures increases relative to a reference level wellrepresents the effects of price changes when they are choppy while this measure outperforms the oil price transformations considered in my paper much of its predictive power is coming from the pre 1986 and pre 1973 part of the sample with less than 10 years of choppy data finding the best oil price transformation will likely require analysis with cross sectional components ruling out effects from oil price decreases is also probably counterproductive to uncovering structure

the asymmetry of the impact of oil price shocks on economic activities an application of the multivariate threshold model this paper applies the multivariate threshold model to investigate the impacts of an oil price change and its volatility on economic activities changes in industrial production and real stock returns the statistical test on the existence of a threshold effect indicates that a threshold value does exist using monthly data of the us canada and japan during the period from 1970 to 2002 we conclude i the optimal threshold level seems to vary according to how an economy depends on imported oil and the attitude towards adopting energy saving technology ii an oil price change or its volatility has a limited impact on the economies if the change is below the threshold levels iii if the change is above threshold levels it appears that the change in oil price better explains macroeconomic variables than the volatility of the oil price and iv if the change is above threshold levels a change in oil price or its volatility explains the model better than the real interest rate

time varying parameter error correction models the demand for money in venezuela 1983 i 1994 iv the possibility of using time varying parameter models in the context of error correction models is studied empirically as an application a money demand relationship m1 for venezuela is estimated from 1983 to 1994 within a cointegrated var framework first the stochastic properties of the series are analysed studying each corresponding order of integration second the existence of a long run stable relation between the variables involved has been investigated and then the cointegration relation and the short run adjustment mechanism estimated as both relations are identified in the context of constant parameters a stability analysis is performed finally the technique of kalman filtering is used to estimate a model that permits the short run parameters to vary while the parameters of the long run relation are kept constant

alternative econometric approaches for analysing the role of the financial sector in economic growth time series evidence from ldcs abstract the study determines and analyses the effects of financial intermediation on the growth of real gdp in ldcs by employing annual data for 71 countries over varying periods that generally span the 1960s and 1980s based on the modified version of the orthodox model framework and an entirely new model framework that recognizes the external effects of the financial sector on the real sector as well as effects of the financial sector on the productivities of factor inputs engaged therein we estimate regression equations for each country our findings are as follows a financial intermediation promotes economic growth in about 85 of the countries b as compared with factors that have often been emphasized in the literature viz export expansion capital formation ratio and labour force growth as important growth promoters financial intermediation is practically at par with export expansion and capital formation ratio and superior to labour force growth as partners in promoting economic growth c the growth promoting effects of financial intermediation are more predominant in low income than in high income ldcs and d the growth promoting effects of financial intermediation are practically invariant across the various regions of the globe

the optimal inventory policies under permissible delay in payments depending on the ordering quantity abstract this paper deals with the problem of determining the economic order quantity under conditions of permissible delay in payments the delay in payments depends on the quantity ordered when the order quantity is less than the quantity at which the delay in payments is permitted the payment for the item must be made immediately otherwise the fixed trade credit period is permitted the minimization of the total variable cost per unit of time is taken as the objective function an algorithm to determine the economic order quantity is developed the results obtained in this paper generalize some already published results

comments on the eoq model under retailer partial trade credit policy in the supply chain abstract huang and hsu 2007 an eoq model under retailer partial trade credit policy in supply chain international journal of production economics doi 10 1016 j ijpe 2007 05 014 investigate the inventory system as a cost minimization problem to determine the retailer s optimal inventory policy under the supply chain they develop two easy to use theorems to locate the optimal inventory policy for the retailer although their inventory models are correct and interesting processes of arguments to derive those theorems to find the optimal inventory policy are not complete so the main purpose of this paper is to overcome these shortcomings and present complete proofs for huang and hsu 2007

input price shocks and the slowdown in economic growth the case of u k manufacturing this paper provides a theoretical and empirical analysis of the effects of input price shocks on economic growth with a focus on united kingdom manufacturing in the 1970s the theoretical model predicts a discrete decline in output and productivity after an input price rise and a longer run slowdown in productivity growth real wage growth and capital accumulation these features characterize the united kingdom and most other oecd economies after 1973 the empirical results confirm the important role of input prices in recent u k adjustment but also point to an important role for other supply and demand factors two types of explanations have been offered for the sharp deterioration in u k economic performance in the past decade focusing respectively on demand and supply factors a standard keynesian view holds that macroeconomic demand management has been either too expansionary or too contractionary and that rising unemployment and falling output reflect the burden of anti inflationary policies an alternative view holds that various supply shocks are the main source of the poor output performance in this interpretation higher raw material prices particularly oil competition from the newly industrializing countries nics and perhaps an independent decline in productivity growth all have lowered output growth and raised unemployment

a neoclassical model of unemployment and the business cycle this paper investigates a general equilibrium model of unemployment and the business cycle in which specialization of labor plays a key role a rational expectations equilibrium with fully flexible wages and prices can exhibit unemployment in which the marginal product of employed workers exceeds the reservation wage of those who are without jobs workers are unemployed either because they are in the process of relocating for a better job or because they are waiting for conditions in the depressed sector to improve moreover seemingly small disruptions in the supplies of primary commodities such as energy could be the source of fluctuations in aggregate employment and can exert surprisingly large effects on real output

modeling renewable energy company risk abstract the renewable energy sector is one of the fastest growing components of the energy industry and along with this increased demand for renewable energy there has been an increase in investing and financing activities the tradeoff between risk and return in the renewable energy sector is however precarious renewable energy companies are often among the riskiest types of companies to invest in and for this reason it is necessary to have a good understanding of the risk factors this paper uses a variable beta model to investigate the determinants of renewable energy company risk the empirical results show that company sales growth has a negative impact on company risk while oil price increases have a positive impact on company risk when oil price returns are positive and moderate increases in sales growth can offset the impact of oil price returns and this leads to lower systematic risk

a century of evolution from harris s basic lot size model survey and research agenda abstract determining the economic lot size has always represented one of the most important issues in production planning this problem has long attracted the attention of researchers and several models have been developed to meet requirements at minimum cost in this paper we explore and discuss the evolution of these models during one hundred years of history starting from the basic model developed by harris in 1913 up to today following harris s work a number of researchers have devised extensions that incorporate additional considerations the evolution of eoq theory strongly reflects the development of industrial systems over the past century here we outline all the research areas faced in the past by conducting a holistic analysis of 219 selected journal papers and trying to give a comprehensive view of past work on the eoq problem finally a new research agenda is proposed and discussed

optimal price discounting and lot sizing policies for perishable items in a supply chain under advance payment scheme and two echelon trade credits abstract many researchers have assumed that a retailer announces price discount to motivate market sales when he has competition in markets unanticipated surplus in inventory or change in the production run of a product but in real life situations there are retailers who announce price discount offer under advance payment ap scheme prior to the selling period due to the advancement of internet and on line money transactions the ap scheme is common and useful to decrease the estimation error in demand and to increase the market sales when the items are arrived to the inventory the priority will be given to the customers who use ap scheme this paper considers a supply chain where the supplier provides the retailer a full trade credit period for payments whereas the retailer offers the partial trade credit to his customers i intend to develop an economic order quantity eoq based model with perishable items in order to investigate the retailer s inventory system as a cost minimization problem under ap scheme and two echelon trade credit option mathematical theorems are developed to determine optimal price discounting and lot sizing policies and a lot of managerial phenomena are obtained through numerical examples

what happened to the oil price macroeconomy relationship abstract strong evidence is found that oil prices no longer granger cause many u s macroeconomic indicator variables in data after 1973 a number of potential explanations are explored that sample stability issues are responsible that oil prices are now endogenous and that linear and symmetric specifications misrepresent the form of the oil price interaction none of these hypotheses are supported by the data the opec price increases do appear to have had significant impacts while the effects of the price declines of the 1980s are smaller and harder to characterize these results have potentially important implications for the large body of research which utilizes oil prices as an instrumental or explanatory variable

public sector capital and the productivity puzzle a number of studies have suggested a quantitatively important relationship between public sector capital accumulation and private sector productivity with the most compelling evidence derived from analyses of state level data estimates herein of production functions that use standard techniques to control for unobserved state specific characteristics however reveal essentially no role for public sector capital in affecting private sector productivity only estimates of state production functions that do not include such controls find substantial productivity impacts this result reconciles existing econometric estimates with the findings of hulten and schwab based on growth accounting techniques as such techniques effectively control for state specific effects region level estimates are essentially identical to those from state data suggesting no quantitatively important spillover effects across states copyright 1994 by mit press

inventory models for deteriorating items with maximum lifetime under downstream partial trade credits to credit risk customers by discounted cash flow analysis abstract getting loans from banks are almost impossible after 2008 global financial crisis as a result about 80 of companies in united kingdom and united states offer their products on various short term free interest loans i e trade credit to customers numerous researchers and academicians apply discounted cash flow dcf analysis merely to compute the interest earned and charged during the credit period but not to the revenue and other costs which are considerably larger than the interest earned and charged for a rigorous analysis the dcf on all relevant costs is applied in addition many products deteriorate continuously and cannot be sold after their maximum lifetimes or expiration dates however very few researchers and investigators have implemented the product lifetime expectance into their models in this paper a supplier retailer customer chain system is developed in which the retailer gets an upstream full trade credit from the supplier whereas offers a downstream partial trade credit to credit risk customers the deterioration rate is non decreasing over time and near 100 particularly close to its expiration date and dcf analysis is applied to compute all relevant costs this paper demonstrates that the retailer s optimal replenishment cycle time not only exists but also is unique thus the search of the global optimal reduces to finding a local solution finally several numerical examples and sensitivity analysis are performed in order to illustrate the problem and obtain managerial insights

construction corrupts empirical evidence from a panel of 42 countries the construction sector whether privately or publicly financed is characterized by potentially large rents and government intervention making it vulnerable to corruption consistent with this both case study and survey evidence has been provided highlighting the problem of malfeasance in this sector in this article we test the proposition that a bigger construction sector is likely to be inimical to clean government based on a panel of 42 countries over the period 1995 2011 we control for a range of potentially confounding variables and the expectation that corrupt public officials may favor the development of this sector because it increases the volume of rents available to them our empirical evidence shows that a larger construction sector will tend to increase perceptions of the extent to which public power is exercised for private gain

the solow model with ces technology nonlinearities and parameter heterogeneity this paper examines whether nonlinearities in the aggregate production function can explain parameter heterogeneity in the solow growth regressions nonlinearities in the production technology are introduced by replacing the commonly used cobb douglas cd aggregated production specification with the more general constant elasticity of substitution ces specification we first justify our choice of production function by showing that cross country regressions favour the ces over the cd technology then by using an endogenous threshold methodology we show that the solow model with ces technology is consistent with the existence of multiple regimes copyright 2004 john wiley sons ltd

can small firms find and defend strategic niches a test of the porter hypothesis a number of studies have found a positive relation between market share and profitability michael porter argues that this need not hold when small firms find strategic niches protected by mobility barriers this paper examines that hypothesis by comparing the profitability of large and small lines of business when the activities of the two groups proxied by the allocation of sales across submarkets differ on average the authors find that in heterogeneous product mix industries profits of large lines of business are no longer significantly greater than profits of smaller rivals except that market leaders maintain their advantage regardless of product mix copyright 1989 by mit press

on optimal payment time for a retailer under permitted delay of payment by the wholesaler abstract jamal et al 2000 optimal payment time for a retailer under permitted delay of payment by the wholesaler international journal of production economics 66 59 66 study a wholesaler retailer supply chain where the retailer is given a permissible credit period to pay back the dues without paying any interest to the wholesaler the problem is modeled as a cost minimization problem with two decision variables the payment time p of the retailer and the length of the inventory cycle t while the model represents in general an interesting problem we show in this note that there are a number of nontrivial flaws contained in the development of their model and therefore the solution they derived is not correct we give the correct model and derive the corresponding optimal solution

is public expenditure productive abstract this paper considers the relationship between aggregate productivity and stock and flow government spending variables the empirical results indicate that i the nonmilitary public capital stock is dramatically more important in determining productivity than is either the flow of nonmilitary or military spending ii military capital bears little relation to productivity and iii a core infrastructure of streets highways airports mass transit sewers water systems etc has most explanatory power for productivity the paper also suggests an important role for the net public capital stock in the productivity slowdown of the last fifteen years

oil price shocks stock market economic activity and employment in greece abstract using a multivariate vector autoregression var approach this paper attempts to shed light into the dynamic relationship among oil prices real stock prices interest rates real economic activity and employment for greece the empirical evidence suggests that oil price changes affect real economic activity and employment oil prices are important in explaining stock price movements stock returns do not lead to changes in real activity and employment

the optimal retailer s ordering policies for deteriorating items with limited storage capacity under trade credit financing abstract under permissible delay in payments all previously published models implicitly assumed that the supplier would offer the retailer a delay period but the retailer would not offer the trade credit period to his her customer huang 2003 journal of the operational research society 54 1011 1015 developed a retailer s replenishment model to reflect the real life situations by assuming that the retailer also adopts the trade credit policy to stimulate his her customer demand in huang s model it is assumed that the goods are not perishable and the storage capacity is unlimited based upon the above argument we propose a two warehouse inventory model for deteriorating items under permissible delay in payments three theorems are developed to determine the optimal cycle time and numerical examples are given to illustrate these theorems finally the results in this paper generalize the results presented by huang 2003 journal of the operational research society 54 1011 1015

is there an effect of policy related uncertainty on inflation evidence from the united states under trump this study bridges the existing literature on the macroeconomic effects of policy related uncertainty and the literature on inflation dynamics and provide fresh insights on the impacts of policy re

optimal pricing and ordering policy under permissible delay in payments abstract many researchers have assumed that the selling price is the same as the purchase cost and developed various eoq models for a retailer when the supplier offers a permissible delay in payments in this paper we complement the shortcoming of their models by considering the difference between the selling price and the purchase cost we then develop an algorithm for a retailer to determine its optimal price and lot size simultaneously when the supplier offers a permissible delay in payments our theoretical result contradicts to their conclusion that the economic replenishment interval and order quantity generally increases marginally under the permissible delay in payments

international oil price uncertainty and corporate investment evidence from china s emerging and transition economy we develop and estimate a dynamic model of investment to investigate the impact of international oil price uncertainty on corporate investment expenditures in china s emerging and transition economy we further examine whether state ownership affects the relationship between oil price uncertainty and corporate investment consistent with the model s prediction the main finding is that oil price uncertainty exerts a negative impact on corporate investment expenditures in addition compared with state owned listed companies the negative influence of oil price uncertainty on corporate investment is more significant for non state owned listed companies our further analysis using the market oriented reform of refined oil pricing in 2008 as a quasi natural event shows the variation between the low degree marketization period and the high degree one in terms of the relationship between international oil price uncertainty state ownership and corporate investment expenditures

can environmental sustainability be used to manage energy price risk energy security issues and climate change are two of the most pressing problems facing society and both of these problems are likely to increase energy price variability in the coming years this paper develops and estimates a model of a company s energy price exposure and presents evidence showing that increases in a company s environmental sustainability lowers its energy price exposure this result is robust across two different measures of energy prices these results should be useful to companies seeking new ways of addressing energy price risk as well as governments concerned about the impact that energy price risk can have on economic growth and prosperity

stackelberg solution in a vendor buyer supply chain model with permissible delay in payments abstract in practice vendors or sellers often offer their buyers a fixed credit period to settle the account the benefits of trade credit are not only to attract new buyers but also to avoid lasting price competition on the other hand the policy of granting a permissible delay adds not only an additional cost but also an additional dimension of default risk to vendors in this paper we will incorporate the fact that granting a permissible delay has a positive impact on demand but negative impacts on both costs and default risks to establish vendor buyer supply chain models then we will derive the necessary and sufficient conditions to obtain the optimal solution for both the vendor and the buyer under non cooperative stackelberg equilibrium finally we will use two numerical examples to show that 1 granting a permissible delay may significantly improve profits for both the vendor and the buyer 2 the sensitivity analysis on the optimal solution with respect to each parameter and 3 the comparisons between nash and stackelberg solutions

joint price and lot size determination under conditions of permissible delay in payments and quantity discounts for freight cost abstract this paper deals with the problem of determining the retailer s optimal price and lot size simultaneously under conditions of permissible delay in payments it is assumed that the ordering cost consists of a fixed set up cost and a freight cost where the freight cost has a quantity discount offered due to the economies of scale the constant price elasticity demand function is adopted which is a decreasing function of retail price investigation of the properties of an optimal solution allows us to develop an algorithm whose validity is illustrated through an example problem

assessing the impact of oil prices on firms of different sizes its tough being in the middle recent empirical research has found evidence of a relationship between oil price movements and stock prices most published research investigates the relationship between oil price movements and stock prices using either economy wide measures of stock prices or industry sector measures of stock prices an important question that has largely gone unanswered relates to the relationship between oil prices and stock prices when the size of firms is allowed to vary relative to large firms do oil price movements have larger or smaller impacts on the stock prices of small or medium sized firms the answer to this question could have important policy implications that affect economic growth and prosperity in this paper a panel of firms is followed over a 17 year period to investigate the relationship between oil price movements firm size and stock prices evidence is found that shows the relationship between oil price movements and stock prices does vary with firm size and the relationship is strongest for medium sized firms

crude oil price uncertainty and corporate investment new global evidence abstract using a comprehensive dataset of more than 33 000 firms from 54 countries in the period 1984 2015 we show that crude oil price uncertainty negatively influences corporate investment more importantly the effect is dependent on the market and stock characteristics of the firms in addition we discover that the effect is stronger in the crude oil producers group than for crude consumers our analysis reveals that the global financial crisis and market volatility phases significantly affect this relationship our results survive a range of robustness tests

responses of international stock markets to oil price surges a regime switching perspective we propose an enhanced regime switching model to investigate the relationships between oil price surges and stock market cycles in five oil dependent countries our model accounts for the joint effects of the west texas intermediate wti and brent oil markets and simultaneously captures asymmetry volatility persistence and regime shifts contained in the underlying financial data we find that stock market returns strongly exhibit a regime switching behaviour but they react differently to the increases in the price of oil more precisely the conditional volatility of studied stock markets during the bear market phases is found to be less affected by oil price surges than during the bull market phases whether the effects of oil shocks are positive or negative depends greatly on the degree of reliance on imported oil the share of the cost of oil in the national income and the degree of improvement in energy efficiency of a given country finally the relatively opposite effects of the wti and brent oil

continuous review inventory model with delay in payments abstract in this paper we examine the continuous review inventory model under permissible delays in payments that is a retailer has the option of either paying for the goods immediately upon the receipt of the order or delay the payment till the next replenishment order where interest will be charged over the delay period expected demand will be assumed constant over time and the order lead time is considered random the objective is to find the optimal ordering quantity and reorder level that will maximize the vendor s total expected profit per unit time when payments are delayed

impact of oil price change on airline s stock price and volatility evidence from china and south korea abstract generally the influence of crude oil price on the industries enterprises varies because they have different levels of reliance on crude oil for airlines the expenditure on fuel accounts for a considerable proportion of their gross costs thus airlines are unusually sensitive to changes in the crude oil price the discussion on the relationship between crude oil price and airlines will help the airlines improve their ability to cope with the crude oil price risk in addition the responses of south korean and chinese airlines in the event of a price shock that take are also very important as the airplane is a basic form of transportation in many countries this study investigates the impact of three crude oil price wti brent dubai change on the stock price and volatility of four airlines korean air asiana airlines air china and china eastern airlines using var garch bekk model the main findings are as follows there is return and volatility spillover effect between crude oil price and the stock prices of airlines the volatility spillover effect between the crude oil price and airlines stock price is more significant than the return spillover effect compared with the transportation industry the stock prices of smaller airlines of south korea and china are relatively more sensitive to the change in oil price in addition compared with korea s airlines china s airlines are influenced more by the oil price change implying that spillover effects owing to oil price are closely related to the different characteristics of the air transport markets of the two countries

firm size and the demand for energy in dutch manufacturing 1978 1986 as in most other industrialized countries the oil price shocks in the seventies led to major rearrangements in the production processes in dutch manufacturing the substitution of expensive energy consuming processes by less energy intensive ones is analyzed by means of a dynamic equation relating the energy demand to the level of output the price of energy and the prices of other inputs using a rather unique data set consisting of panel data pertaining to several thousands of manufacturing firms it is found that large firms can reduce energy costs more than small firms

oil and the macroeconomy when prices go up and down an extension of hamilton s results in an important paper hamilton 1983 demonstrated a strong correlation between oil price changes and gross national product growth in u s data however his study pertained to a period in which all the large oil price movements were upward and thus it left unanswered the question whether the correlation persists in periods of price decline moreover the price variable he used was somewhat distorted by price controls in the 1970s this note investigates whether hamilton s results continue to hold when the sample is extended to include the recent oil market collapse and the oil price variable is corrected for the effects of price controls particular attention is given to the possibility of asymmetric responses to oil price increases and decreases as suggested in the structural employment literature loungani 1986 davis 1987 hamilton 1988 like hamilton i based my investigation on the gnp equation in sims s 1 980b six variable quarterly vector autoregressive model

oil shocks and aggregate macroeconomic behavior the role of monetary policy a recent paper by bernanke gertler and watson 1997 suggests that monetary policy could be used to eliminate any recessionary consequences of an oil price shock this paper challenges this conclusion on two grounds first we question whether the federal reserve actually has the power to implement such a policy for example we consider it unlikely that additional money creation would have succeeded in reducing the fed funds rate by 900 basis points relative to the values seen in 1974 second we point out that the size of the effect that bernanke gertler and watson attribute to oil shocks is substantially smaller than that reported by other researchers primarily due to their choice of a shorter lag length than that used by other researchers we offer evidence in favor of the longer lag length employed by previous research and show that under this specification even the aggressive federal reserve policies proposed would not have succeeded in averting a downturn