Risk preferences under price uncertainties and production risk: A note

We generalize Kumbhakar's model and techniques in several ways. First, our method does not require specification and estimation of the production function or the output risk function. Second, we assume a general form of the production risk and output/input price risk. Third, the statistical independence assumption is relaxed without any added complications. Finally, we assume that the firm maximizes the expected utility of the profit (not the anticipated profit).