Economic behavior under uncertainty: a joint analysis of risk preferences and technology

Article Abstract:

A mathematical model was created to measure the impact of a decision maker's risk preference function together with parameters of production function or technology based on observed economic behavior. The model was used on a time-series analysis of US corn and soybean allocation decisions given price and production uncertainty. Results indicate that corn-soybean farmers are reluctant to take risks, and provide data on the impact of risk on acreage decisions and on the farmers' implicit cost of private risk undertaken.

Speculation, Risk (Economics)

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The translog production function and variable returns to scale

Article Abstract:

The translog production function is estimated in the manner of the inverse input demand function, given nonhomothetic technology and variable returns to scale. The model includes cost share equations and uses US manufacturing data. The results suggest that constant returns to scale, homotheticity, and homogeneity are erroneous assumptions in modeling production structure. Thus, previous analyses that assume homogeneity and constant economies of scale are suspect.

Usage, Economies of scale, Demand functions (Economics), Demand functions

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Production functions with factor-oriented scale sensitivity

Article Abstract:

A mathematical model is constructed to use capital stock to measure scale elasticity. The objective of the model is to be able to employ a general method to generate production functions with a scale elasticity responsive to the capital stock (SSWK). The SSWK production function will embody desirable characteristics of diminishing returns to labor and/or factor substitutability.

Econometrics, Input-output analysis

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