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