Production Location under Technology Uncertainty

Lin-Ti Tan and Song-Ken Hsu
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Lin-Ti Tan: Institute of Economics, Academia Sinica, Nankang, Taipei 115, Taiwan
Song-Ken Hsu: Department of Industrial Economics, Tamkang University, Tamsui, Taipei 251, Taiwan

Environment and Planning A, 2000, vol. 32, issue 3, 445-454

Abstract: In this paper we examine the implications of technology uncertainty for production location in a general setting, in which the location and production decisions are determined ex ante and a general specification of technology uncertainty is adopted. In addition, to examine the endpoint optimality issue, we also provide comparative static results which are novel in the literature. Moreover, the exhaustion of information contained in the second-order optimal conditions in deriving the conditions for endpoint optimality differentiates our analysis from previous works.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envira:v:32:y:2000:i:3:p:445-454

DOI: 10.1068/a31195

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