Elasticity of risk aversion and international trade
Broll, Udo
Wahl, Jack E.
Wong, Wing-Keung
10.4225/03/5935003b741a1
https://bridges.monash.edu/articles/journal_contribution/Elasticity_of_risk_aversion_and_international_trade/5073976
This note analyzes export production in the presence of exchange rate uncertainty under mean-variance preferences. We present the elasticity of risk aversion, since this elasticity concept permits a distinct investigation of risk and expectation effects on exports. Counterintutitive results are possible, e.g. though the home currency is revaluating (devaluating) exports of the firm increase decrease. This fact may contribute to the explanation of disturbing empirical results.
2017-06-05 06:54:50
elasticity of risk aversion
monash:2202
devaluation
Exchange rate risk
1959.1/2202
trade
mean-variance model
2005