Investment under Uncertainty and Dynamic Adjustment in the Finnish Pork Industry
نویسنده
چکیده
The paper develops and estimates a generalized investment model of the firm, using dynamic dual approach. Optimal zero investments are allowed to arise either from generalized adjustment costs, uncertainty, or both. The results suggest that hog production technology exhibits both shortand long-run size economies. Environmental regulations are, therefore, going to play an increasingly important role in determining hog production costs and spatial concentration of the hog industry.
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