markups are estimated based on a gross output translog production function using popular estimation methods. I find an …

-adjustment costs in an inflationary environment. The model nests both the original menu-cost model that allows production to be …

-adjustment costs in an inflationary environment. The model nests both the original menu-cost model that allows production to be …

foreign countries, we show that the firm's production decision is independent of the firm's risk attitude and of the … sources of exchange rate uncertainty. The firm has to cross-hedge its exchange rate risk exposure because there is only a …

marginal effects of price uncertainty on production are both positive (negative) when regret aversion prevails if the random … of the price distribution as such plays a pivotal role in determining the regret-averse firm's production decision. …

This paper examines the production and hedging decisions of the competitive firm under price uncertainty when the firm … is not only risk averse but also regret averse. Regret-averse preferences are characterized by a modified utility … difference between the actual profit and the maximum profit attained by making the optimal production and hedging decisions had …

-averse firms to produce more than the purely risk-averse counterparts and study the comparative statics of the optimal production … firms under certainty. This paper extends the theory by further investigating the effects of regret-aversion on production …. We compare the optimal output levels of regret-averse firms with purely risk- averse firms under uncertainty and firms …

This note examines the behavior of a competitive firm that faces joint price and inflation risk. Given that the price … risk is negatively correlated with the inflation risk in the sense of expectation dependence, the firm optimally opts for … an overhedge if the firm's coefficient of relative risk aversion is everywhere no greater than unity. Furthermore …