Overlooked results on the competitive firm under output price risk: Alternative sufficient conditions for downward sloping factor demand curves

2020 ◽  
Vol 196 ◽  
pp. 109507
Author(s):  
Richard Watt
Keyword(s):  
Sufficient Conditions ◽  
Price Risk ◽  
Output Price ◽  
Competitive Firm ◽  
Factor Demand ◽  
Demand Curves

scholarly journals Dairy Supply and Factor Demand Response to Output Price Risk: An Econometric Assessment

1989 ◽  
Vol 18 (2) ◽  
pp. 103-108 ◽  
Author(s):  
Yir-Hueih Luh ◽  
Spiro E. Stefanou
Keyword(s):  
Decision Making ◽  
Expected Utility ◽  
Price Risk ◽  
Demand Functions ◽  
Output Price ◽  
Price Series ◽  
Factor Demand ◽  
Variable Factor ◽  
Production Decision ◽  
Econometric Assessment

The model of production decision making for the expected utility maximizing firm under output price uncertainty is applied to a panel Pennsylvania dairy operators. The model generalized duality implemented in this paper has the advantage of generating a system of supply and variable factor demand functions that consistently account for the presence of output price risk. The application to Pennsylvania dairy operators indicates that output price risk measured by the second and third moments of individual operators’ historical output price series is not an important factor in production decision making. In addition to not maximizing expected utility, these operators are not expected profit maximizers.

Perversity in Factor Demand Curves-Simulation and Theory

Economica ◽  
1986 ◽  
Vol 53 (212) ◽  
pp. 515
Author(s):  
John S. Henderson ◽  
Richard H. Henderson
Keyword(s):  
Factor Demand ◽  
Demand Curves

Testable hypotheses of the competitive firm using hedging to manage price risk

1992 ◽  
Vol 44 (3) ◽  
pp. 169-185 ◽  
Author(s):  
Timothy A. Park ◽  
Frances Antonovitz
Keyword(s):  
Price Risk ◽  
Competitive Firm

scholarly journals Output price risk, material input price risk, and price margins: Evidence from the US catfish industry

2017 ◽  
Vol 29 ◽  
pp. 23-36
Author(s):  
David Bouras ◽  
◽  
Ogugua Anunoby ◽  
Otabek Saitakhunov ◽  
◽  
...  
Keyword(s):  
Price Risk ◽  
Input Price ◽  
Output Price ◽  
The Us ◽  
Material Input

scholarly journals Nonparametric Counterfactual Predictions in Neoclassical Models of International Trade

2017 ◽  
Vol 107 (3) ◽  
pp. 633-689 ◽  
Author(s):  
Rodrigo Adao ◽  
Arnaud Costinot ◽  
Dave Donaldson
Keyword(s):  
International Trade ◽  
World Economy ◽  
Functional Form ◽  
Sufficient Conditions ◽  
Gravity Models ◽  
Demand System ◽  
Factor Demand ◽  
The World ◽  
Potential Benefits ◽  
Arbitrary Change

We develop a methodology to construct nonparametric counterfactual predictions, free of functional form restrictions on preferences and technology, in neoclassical models of international trade. First, we establish the equivalence between such models and reduced exchange models in which countries directly exchange factor services. This equivalence implies that, for an arbitrary change in trade costs, counterfactual changes in the factor content of trade, factor prices, and welfare only depend on the shape of a reduced factor demand system. Second, we provide sufficient conditions under which estimates of this system can be recovered nonparametrically. Together, these results offer a strict generalization of the parametric approach used in so-called gravity models. Finally, we use China's recent integration into the world economy to illustrate the feasibility and potential benefits of our approach. (JEL C51, D51, F11, F14, O19, P33)

Industry Factor Demand Curves Can Be Upward Sloping

1987 ◽  
Vol 97 (387) ◽  
pp. 746 ◽  
Author(s):  
Daniel J. Seidmann
Keyword(s):  
Factor Demand ◽  
Demand Curves
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