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A model of homogeneous input demand under price uncertainty

Authors :
Wolak, Frank A.
Kolstad, Charles D.
Source :
American Economic Review. June, 1991, Vol. 81 Issue 3, p514, 25 p.
Publication Year :
1991

Abstract

This paper examines the empirical validity of a model of homogenous input demand under price uncertainty in which firms trade off expected input cost against its variability (risk) in selecting the optimal input supplier mix. Using recent work in time-series econometrics, this model is applied to the Japanese steam-coal import market, where five suppliers compete: China, the Soviet Union, South Africa, the United States, and Australia. (JEL L10, L72)

Details

ISSN :
00028282
Volume :
81
Issue :
3
Database :
Gale General OneFile
Journal :
American Economic Review
Publication Type :
Academic Journal
Accession number :
edsgcl.10897913