This paper studies the aggregate substitution and expansion effects triggered by changes in input prices, in a context where firms supply a homogenous commodity and compete in quantities à la Cournot. We derive a sufficient condition for the existence of a Cournot equilibrium and show that this...

This study proposes a "Flexible Cost Model" (FCM) for settings in which firms may be unable or unwilling to optimally manage their cost structures. FCM, which nests a wide range of more restrictive models, allows for a flexible specification not only of the technology but also of firm-level...

The paper reports the empirical results of the validation of the Stochastic Production Frontier (SPF) Model to an unbalanced panel comprising a cross-section of 8 manufacturing industries over a time span of 26 years The results provide insights on the repercussions of the micro-economic reform...

At the firm level, revenue and costs are well measured but prices and quantities are not. This paper shows that because of these data limitations estimates of returns to scale at the firm level are for the revenue function, not production function. Given this observation, the paper argues that,...