ESTIMATION OF MOMENTS AND PRODUCTION DECISIONS UNDER UNCERTAINTY

Authors
APPELBAUM E ULLAH A
Citation
E. Appelbaum et A. Ullah, ESTIMATION OF MOMENTS AND PRODUCTION DECISIONS UNDER UNCERTAINTY, Review of economics and statistics, 79(4), 1997, pp. 631-637
Citations number
23
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics
Journal title
Review of economics and statistics → ACNP
ISSN journal
00346535
Volume
79
Issue
4
Year of publication
1997
Pages
631 - 637
Database
ISI
SICI code
0034-6535(1997)79:4<631:EOMAPD>2.0.ZU;2-#
Abstract
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.