Table II The competitive storage model S...

Table II

The competitive storage model

$S t = a + b {\hat{P}}_{t} + ε_{t}$	Production decision equation	(1)
D_t=c−dP_t	Consumption behavior equation	(2)
$\hat{P_{t}} = E_{t - 1} (P_{t})$	Rational expectation equation	(3)
D_t=S_t+(1−δ)X_t−1−X_t	Market equilibrium equation	(4)
$P_{t} ⩾ \frac{1 - δ}{1 - r} {\hat{P}}_{t + 1} - ϕ' (X_{t}) ⊥ X_{t} ⩾ 0$	Storage arbitrage equation	(5)

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