TY - JOUR
T1 - Consumer Inventory and Demand for Storable Goods
T2 - New Evidence from a Consumer Survey
AU - Kano, Kazuko
N1 - Funding Information:
I appreciate helpful comments from Susumu Imai, Takashi Kano, Naohito Abe, and the seminar participants at the Joint Usage and Research Center Programs, Hitotsub-ashi University, Waseda University, and the Second Asia Pacific Industrial Organisation Conference. I also thank Micheal Keane, Jordan Louviere and Edward Wei for valuable comments during the early stage of this research. I appreciate the excellent research assistance from Tomoya Ozeki. I thank INTAGE and the Research Center for Economic and Social Risks, Hitotsubashi University for allowing me to use the SRI data. I wish to thank Musashino University, Joint Usage and Research Center Programs at Hitotsubashi University, and the Japan Society for the Promotion of Science for financial support (JSPS project number 17K03720). I am responsible for all errors in this paper.
Publisher Copyright:
© 2018 Japanese Economic Association
PY - 2018/9
Y1 - 2018/9
N2 - In this study, I provide new evidence on consumer inventory from a unique survey on the purchase and inventory of a storable product. I confirm that the predictions regarding the correlations between the key variables of purchase probability, purchase quantity and inventory derived from the standard dynamic models of consumer inventory are consistent with the data. Furthermore, I find that the amount of daily consumption varies within a household across time and depends on inventory holding. The evidence does not conform to a constant consumption rate, which studies often assume for tractability.
AB - In this study, I provide new evidence on consumer inventory from a unique survey on the purchase and inventory of a storable product. I confirm that the predictions regarding the correlations between the key variables of purchase probability, purchase quantity and inventory derived from the standard dynamic models of consumer inventory are consistent with the data. Furthermore, I find that the amount of daily consumption varies within a household across time and depends on inventory holding. The evidence does not conform to a constant consumption rate, which studies often assume for tractability.
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U2 - 10.1111/jere.12191
DO - 10.1111/jere.12191
M3 - Article
AN - SCOPUS:85051102613
SN - 1352-4739
VL - 69
SP - 284
EP - 305
JO - Japanese Economic Review
JF - Japanese Economic Review
IS - 3
ER -