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Substitution and income effects for increases in risk

โœ Scribed by Arthur Snow


Book ID
117332484
Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
59 KB
Volume
79
Category
Article
ISSN
0165-1765

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Duality, income and substitution effects
โœ Carmen F. Menezes; X. Henry Wang ๐Ÿ“‚ Article ๐Ÿ“… 2005 ๐Ÿ› John Wiley and Sons ๐ŸŒ English โš– 172 KB

This paper uses duality theory to decompose the total effect on the competitive firm's output of an increase in the riskiness of output price into income and substitution effects. Properties of preferences that control the sign of each effect are identified. The analysis extends to the general class