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ON THE COMPETITIVE FIRM UNDER PRODUCTION UNCERTAINTY *
Author(s) -
Pope Rulon D.,
Just Richard E.
Publication year - 1977
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1977.tb00198.x
Subject(s) - production (economics) , estimator , simple (philosophy) , function (biology) , estimation , econometrics , production function , economics , maximum likelihood , mathematical optimization , computer science , mathematical economics , mathematics , microeconomics , statistics , philosophy , management , epistemology , evolutionary biology , biology
Risky production functions which are commonly in use are shown to be very restrictive. In particular, such functions cannot describe technologies where inputs marginally reduce risk. A simple production function which avoids these restrictions is posited and alternative estimation procedures are discussed. Both maximum likelihood and multistage estimators are discussed.