Input demand with cost uncertainty

Author: Alghalith, Moawia

Source: International Economic Journal, Volume 19, Number 1, March 2005 , pp. 115-123(9)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

We simultaneously extend the models developed by Stewart, Paroush & Wolf, and Viaene & Zilcha. That is, allowing output to adjust and using a general utility, general distributions and a two-variable-input production function, we show the impact of the cost risk and increasing risk aversion on each input demand, output, input productivity (marginal and average), and the inputs ratio.

Keywords: Cost uncertainty; input price uncertainty; risk aversion; utility

Document Type: Research article

DOI: http://dx.doi.org/10.1080/1351161042000320425

Affiliations: 1: University of St Andrews Fife UK

Publication date: 2005-03-01