Few attempts have been made to estimate production functions for the Australian grazing industries. The question of the nature of the effect of input levels on production risk has been broached even more rarely. Previous investigators had to employ models and methods of estimation which embody...

The implications of alternative disturbance specifications in supply functions have been considered in recent theoretical work but little, if any, empirical evidence has been provided on such specifications. Any empirical investigation of the nature of a supply function disturbance is hampered...

Efficient allocation of resources has usually been couched in risk less terms, partly because statistical techniques did not exist for measuring the impact of varying levels of factors of production on risks associated with production. Now that such techniques are available, methods are required...

Analysis of actual observations of response processes is a routine procedure in applied econometrics but methods of dealing with purely subjective probability distributions as response 'data' have seemingly not hitherto been worked out. The models and methods developed here go some way to...

A Bayesian approach is used to provide a framework for optimal input allocation for a stochastic production function with uncertain parameters. The chosen production function is a single-input version of a function which can exhibit positive or negative marginal risk. The sensitivity of optimal...