THE SHORT-RUN AND LONG-RUN COMPARATIVE STATICS OF UNCERTAINTY

Authors
HENNESSY DA
Citation
Da. Hennessy, THE SHORT-RUN AND LONG-RUN COMPARATIVE STATICS OF UNCERTAINTY, Economics letters, 55(3), 1997, pp. 347-353
Citations number
17
Categorie Soggetti
Economics
Journal title
Economics letters → ACNP
ISSN journal
01651765
Volume
55
Issue
3
Year of publication
1997
Pages
347 - 353
Database
ISI
SICI code
0165-1765(1997)55:3<347:TSALCS>2.0.ZU;2-U
Abstract
If a two-input stochastic reward function is supermodular, then a firs t-degree stochastic shift increases both inputs, and the more variable factor is more responsive in the long run. These results hold for sec ond-degree dominance under additional curvature conditions. (C) 1997 E lsevier Science S.A.