Equilibrium storage with multiple commodities

This paper introduces a multisector model of commodity markets with storage, where equilibrium is defined by profit maximization, arbitrage and market clearing conditions. We then solve for the decentralized equilibrium via a corresponding dynamic program. We also describe the dynamics of the model, establishing geometric ergodicity, a Law of Large Numbers and a Central Limit Theorem.

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Year of publication:	2009
Authors:	Nishimura, Kazuo ; Stachurski, John
Published in:	Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 45.2009, 1-2, p. 80-96
Publisher:	Elsevier
Subject:	Commodities Dynamic programming Stability

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005374072