Information on the economies of scope (or cost complementarities) between two or more output variables is traditionally obtained from the second derivative properties of an econometrically estimated multi-output cost function. However, in some instances the econometric estimation of a cost...

Chambers and Quiggin (2000) advocate the use of state-contingent production technologies to represent risky production and establish important theoretical results concerning producer behaviour under uncertainty. Unfortunately, perceived problems in the estimation of state-contingent models have...