When modeling output uncertainty, the multiplicative specification is consistently chosen over the additive form, despite the latter being arguably intuitively more obvious. The rationale for this seems to be that when production risk is the only source of uncertainty, additive uncertainty does...

This paper shows that, if the production function is appropriately restricted, some symmetry (reciprocity) results that hold for a competitive firm under certainty continue to hold under price uncertainty, for any strictly concave utility function. In contrast, earlier analyses have established...

This paper examines the effect of changes in factor endowments on income Distribution in a four-factor, there-commodity model, in which two of the factors are region-specific while the other two are inter-regionally and inter-sectorally mobile. We provide an intermediate run model which bridges...