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Short- And Long-Run Comparative Statics of Uncertainty, The

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  • Hennessy, David A.

Abstract

If a two-input stochastic reward function is supermodular, then a first-degree stochastic shift increases both inputs, and the more variable factor is more responsive in the long run. These results hold for second-degree dominance under additional curvature conditions. Author Keywords: Le Chatelier principle; Long run; Short run; Supermodular

Suggested Citation

  • Hennessy, David A., 1997. "Short- And Long-Run Comparative Statics of Uncertainty, The," Staff General Research Papers Archive 10670, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:10670
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