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Input demand with cost uncertainty

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  • Moawia Alghalith

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.

Suggested Citation

  • Moawia Alghalith, 2005. "Input demand with cost uncertainty," International Economic Journal, Taylor & Francis Journals, vol. 19(1), pages 115-123.
    • Handle: RePEc:taf:intecj:v:19:y:2005:i:1:p:115-123
    DOI: 10.1080/1351161042000320425
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    References listed on IDEAS

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    1. Viaene, Jean-Marie & Zilcha, Itzhak, 1998. "The Behavior of Competitive Exporting Firms under Multiple Uncertainty," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 591-609, August.
    2. Batra, Raveendra N & Ullah, Aman, 1974. "Competitive Firm and the Theory of Input Demand under Price Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 82(3), pages 537-548, May/June.
    3. Hartman, Richard, 1975. "Competitive Firm and the Theory of Input Demand under Price Uncertainty: Comment," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1289-1290, December.
    4. Paroush, Jacob & Wolf, Avner, 1992. "The Derived Demand with Hedging Cost Uncertainty in the Futures Markets," Economic Journal, Royal Economic Society, vol. 102(413), pages 831-844, July.
    5. Quirino Paris, 1979. "Revenue and Cost Uncertainty, Generalized Mean-Variance, and the Linear Complementarity Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 268-275.
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    Cited by:

    1. Andrew Muhammad, 2015. "Price Risk and Exporter Competition in China's Soybean Market," Agribusiness, John Wiley & Sons, Ltd., vol. 31(2), pages 188-197, April.
    2. Alghalith, Moawia, 2008. "The manufacturing base under energy price uncertainty," Energy Economics, Elsevier, vol. 30(4), pages 1951-1956, July.
    3. repec:ebl:ecbull:v:4:y:2005:i:15:p:1-6 is not listed on IDEAS

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