trend risk and population basis risk. In particular, the cross- and auto-correlations between the innovations of the latent … uncorrelated. This permits us to disentangle trend risk and population basis risk, thereby sparing us from the need to use a …

. Failure to allow for this possible input–output risk structure is indeed one of the limitations of the conventional form of … the CES production function. This limitation may result in false inferences about input-driven output risk. In light of … from very restrictive structural assumptions regarding risk considerations, and that such restrictions may lead to biased …