Competitive firm and resource allocation under uncertain capital service.

A study examined the effects of uncertain capital service and industry risk pooling on the behavior of a competitive firm and the allocation of resources. A two-sector general equilibrium framework was used. It was found that capital service uncertainty leads to a reduction in a firm's output, inp...

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Publicado en:Southern Economic Journal Vol. 57; pp. 208 - 221
Autores principales: Martin, Robert E., Yu, Eden S. H.
Formato: Artículo
Publicado: Southern Economic Association July 1990
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Competitive firm and resource allocation under uncertain capital service.
      aug:
        au:
          Martin, Robert E.
          Yu, Eden S. H.
      su:
        Resource allocation -- Mathematical models
        Production (Economic theory)
        Uncertainty
        Economics
      sug:
        subj:
          Resource allocation -- Mathematical models
          Production (Economic theory)
          Uncertainty
          Economics
      ab: A study examined the effects of uncertain capital service and industry risk pooling on the behavior of a competitive firm and the allocation of resources. A two-sector general equilibrium framework was used. It was found that capital service uncertainty leads to a reduction in a firm's output, inputs, and capital labor and that a reduction in capital reliability or a marginal increase in uncertainty produces a similar effect. Other findings involved the effect of changes in factor endowments and output prices on sectoral factor intensities, input utilization, factor rewards, and output levels. In addition, it was shown that, given risk aversion, the factor-price equalization theorem fails to hold and the Stopler-Samuelson and Rybczynski theorems are only partially valid. The results in the traditional general equilibrium models were mitigated or even reversed by the presence of uncertain capital services.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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