The Allocation of Resources under Uncertainty

Harris Dellas and Ana Fernandes

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft

Abstract: We study the effects of uncertainty on the allocation of resources in the standard, static, general equilibrium, two-sector, two-factor model. The elasticity of substitution in production vs that in consumption plays a key role in determining whether uncertainty attracts or repels resources. Risk aversion matters, but to a smaller extent, while factor endowments and factor intensities play a more limited role.

Keywords: Uncertainty; general equilibrium; two-sector model (search for similar items in EconPapers)
JEL-codes: E2 D5 D8 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-upt
Date: 2006-12
View list of references

Downloads: (external link)
http://www.vwl.unibe.ch/papers/dp/dp0606.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ube:dpvwib:dp0606

Access Statistics for this paper

More papers in Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft
Contact information at EDIRC.
Series data maintained by Silvia Glusstein-Gerber ().