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The Stochastic Cash Balance Problem With Average Compensating-Balance Requirements - Softcover

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9781333774349: The Stochastic Cash Balance Problem With Average Compensating-Balance Requirements

Synopsis

This book presents a stochastic cash balance problem with average compensating balance requirements. The author develops a dynamic programming model that represents the relevant cost function for a firm facing such requirements. The model is used to solve a numerical example, and the results are compared with those obtained from a static two-sided policy. The dynamic programming solution represents a significant reduction in relevant costs in the example. The book provides a valuable contribution to the literature on cash management and will be of interest to researchers and practitioners in the field. The author's clear and concise exposition makes the book accessible to a wide audience, and the numerical examples and insights will be of great value to those seeking to improve their cash management practices.

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