Cost function and factor demand estimation and measurement are among the most useful tools in economic analysis. This paper defines cost function flexibility in a new way that extends results and concepts from consumer demand theory to models of joint production. This applies to production...

This paper proposes a new way to empirically model netput functions. It argues for the flexibility and rationality of specifying netputs as a function of competitive prices, fixed inputs, and restricted profit. We call these implicit netput functions because they depend on restricted profit....

Agricultural production is subject to supply risk. Expected and realized farm outputs and output prices are unknown and unobservable when inputs are chosen. Crop and livestock production decisions are linked over time. Producers’ expectations are particularly difficult to model. This paper...