E. Appelbaum et A. Ullah, ESTIMATION OF MOMENTS AND PRODUCTION DECISIONS UNDER UNCERTAINTY, Review of economics and statistics, 79(4), 1997, pp. 631-637
The purpose of this paper is to examine production decisions under out
put price uncertainty. Using a nonparametric estimation technique to e
stimate the first four moments of the unknown price distribution and a
pplying duality, we provide a simple empirical framework for the analy
sis of supply and demand decisions under price uncertainty. The model
is used to examine the importance of higher moments in the firm's prod
uction decisions and to investigate underlying attitudes toward risk.