Econometric Modeling of Input-Driven Output Risk through a Versatile CES Production Function
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摘要
This paper shows that the conventional CES production function imposes a restrictive a priori link between input use and output variance and proposes a generalized CES (following Just & Pope) that separates mean and variance components and is estimated via a three-stage NLS procedure; empirical application to Hexem–Heady irrigation and fertilizer experiments finds water increases yield variance while nitrogen has a near-zero (slightly negative) effect, demonstrating the practical importance of allowing flexible input-driven output risk [page::1][page::12].
