IDEAS home Printed from https://ideas.repec.org/p/qed/wpaper/473.html
   My bibliography  Save this paper

The Demand for Inputs under Risk Aversion

Author

Listed:
  • Roger Latham

Abstract

This paper analyses a model where the firm is risk averse and there is ex post flexibility. First, a sufficient condition for a mean-preserving spread in the output price to reduce the optimal choice of ex ante input is obtained. Second, using mean-variance analysis, mean-preserving increases in riskiness reduce the optimal choice of ex ante input given that absolute risk aversion is a decreasing function of expected profits.

Suggested Citation

  • Roger Latham, 1982. "The Demand for Inputs under Risk Aversion," Working Paper 473, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:473
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:wpaper:473. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.