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Inventory Adjustment and Dynamic Winery Behavior.
- Source :
- American Journal of Agricultural Economics; May82, Vol. 64 Issue 2, p222, 10p
- Publication Year :
- 1982
-
Abstract
- This paper develops a dynamic model of processor behavior which is applied to the California wine industry. Price, production, and input demand functions are derived from an optimal control model which takes into account inventory growth from aging and the linkage between product inventories and input purchases. An important feature of the model is that expected future market conditions and beginning inventories influence current behavior through changes in the inventory shadow price. The empirical results generally conform to the theoretical specification and emphasize the role of demand expectations on winery behavior. [ABSTRACT FROM AUTHOR]
- Subjects :
- WINE industry
ECONOMIC demand
INVENTORY control
Subjects
Details
- Language :
- English
- ISSN :
- 00029092
- Volume :
- 64
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- American Journal of Agricultural Economics
- Publication Type :
- Academic Journal
- Accession number :
- 4600521
- Full Text :
- https://doi.org/10.2307/1241126