Alghalith, Moavia; Dalal, Aredishir J. - Centre for Research into Industry, Enterprise, Finance … - 2002
When modeling output uncertainty, the multiplicative specification is consistently chosen over the additive form … multiplicative uncertainty does. We show that, regardless of the specification of output uncertainty, if hedging is absent and there … is simultaneous price and output uncertainty, output is always lower than the situation in which one or both sources of …