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Input Price Uncertainty and Factor Demand

Author

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  • S. Devadoss
  • E. Kwan Choi

Abstract

A simple two-input and one-output model is used to examine the effects of variable input price uncertainty on a quasi-fixed factor. These theoretical results, applied to a livestock firm, indicate that choice of the quasi-fixed factor depends upon the attitude of the farmer toward risk and whether the inputs are complements, substitutes, or independents.

Suggested Citation

  • S. Devadoss & E. Kwan Choi, 1987. "Input Price Uncertainty and Factor Demand," Center for Agricultural and Rural Development (CARD) Publications 87-wp25, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:87-wp25
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    Cited by:

    1. Abebe, Kassahun & Dahl, Dale C. & Olson, Kent D., 1989. "The Demand For Hired Farm Labor," Staff Papers 13557, University of Minnesota, Department of Applied Economics.
    2. Horbulyk, T.M., 1990. "Firm Response to Price Uncertainty: Tripartite Stabilization and the Western Canadian Cattle Industry," Papers 2-90, Gouvernement du Canada - Agriculture Canada.

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