Any demand equation satisfying Lau’s (1982) Fundamental Theorem of Exact Aggregation and 0° homogeneity in prices and income will have a Gorman (1981) functional form for each income term. This property does not depend on symmetry or adding up. The implications of this result are illustrated...

Two common problems in econometric models of production are aggregation and unobservable variables. Many production processes are subject to production shocks, hence both expected and realized output is unknown when inputs are committed. Expectations processes are notoriously difficult to model,...

A recent class of factor demand models is discussed and used to analyze U.S. state-level production data. The approach accommodates output risk, heterogeneous technologies, technological change, endogenous variables, aggregation across agents, and more general flexible functional forms than...

Cost function and factor demand estimation and measurement are among the most useful tools in economic analysis. This paper defines cost function flexibility in a new way that extends results and concepts from consumer demand theory to models of joint production. This applies to production...

Agricultural production is subject to supply risk. Expected and realized farm outputs and output prices are unknown and unobservable when inputs are chosen. Crop and livestock production decisions are linked over time. Producers’ expectations are particularly difficult to model. This paper...

Comprehensive, multi-level approaches are required to address obesity. One important target for intervention is the economic domain. The purpose of this study was to synthesize existing evidence regarding the impact of economic policies targeting obesity and its causal behaviours (diet, physical...

Economists who estimate demand or supply systems are often faced with the issue of whether to estimate with shares or quantities as the dependent variables. This paper reviews the implications of making the wrong choice in the context of normalized profit functions of competitive behavior. The...

This paper proposes a new way to empirically model netput functions. It argues for the flexibility and rationality of specifying netputs as a function of competitive prices, fixed inputs, and restricted profit. We call these implicit netput functions because they depend on restricted profit....

Use of public resources for private economic gain is a longstanding, contested political issue. Public resources generate benefits beyond commodity uses, including recreation, environmental and ecological conservation and preservation, and existence and aesthetic values. We analyze this problem...