TY - DATA T1 - Elasticity of risk aversion and international trade PY - 2017/06/05 AU - Broll, Udo AU - Wahl, Jack E. AU - Wong, Wing-Keung UR - https://bridges.monash.edu/articles/journal_contribution/Elasticity_of_risk_aversion_and_international_trade/5073976 DO - 10.4225/03/5935003b741a1 L4 - https://ndownloader.figshare.com/files/8589505 KW - elasticity of risk aversion KW - monash:2202 KW - devaluation KW - Exchange rate risk KW - 1959.1/2202 KW - trade KW - mean-variance model KW - 2005 N2 - 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. ER -