Consider the simple additive stochastic production function x(a, q) g(a) q. What assumptions are required on g( ) and the distribution of θ to ensure that the distribution of x satisfies stochastic...

Consider the simple additive stochastic production function x(a, q) g(a) q. What assumptions are required on g( ) and the distribution of θ to ensure that the distribution of x satisfies stochastic dominance, CDFD and MLRC?




May 26, 2022
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