Production risk and the estimation of ex-ante cost functions.

Cost function estimation under production uncertainty is problematic because the relevant cost is conditional on unobservable expected output. If input demand functions are also stochastic, then a nonlinear errors-in-variables model is obtained and standard estimation procedures typically fail to at...

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Bibliographic Details

Published in:	Journal of Econometrics Vol. 100; no. 2; pp. 357 - 381
Main Author:	Moschini, GianCarlo
Format:	Article
Published:	Elsevier Science February 2001
Subjects:	Mathematical models in business Industrial costs Estimation theory Risk Uncertainty Economics
Online Access:	View this record in EBSCOhost