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Measuring Scale and Technical Change from Observable Data Under Uncertainty

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  • Flacco, Paul R.
  • Larson, Douglas M.

Abstract

Returns to scale and technological change can be measured without econometric estimation for industries with output price uncertainty using panel data. Since expected utility maximization implies cost minimization, with panel data it is possible to approximate marginal cost using observed prices and quantities, from which scale and productivity measures follow.

Suggested Citation

  • Flacco, Paul R. & Larson, Douglas M., 1990. "Measuring Scale and Technical Change from Observable Data Under Uncertainty," 1990 Annual meeting, August 5-8, Vancouver, Canada 271065, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:271065
    DOI: 10.22004/ag.econ.271065
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    References listed on IDEAS

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    7. Chavas, Jean-Paul & Pope, Rulon D & Leathers, Howard, 1988. "Competitive Industry Equilibrium under Uncertainty and Free Entry," Economic Inquiry, Western Economic Association International, vol. 26(2), pages 331-344, April.
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