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https://doi.org/10.1016/j.econlet.2006.01.031
| Title: | Elasticity of risk aversion and international trade | Authors: | Broll, U. Wahl, J.E. Wong, W.-K. |
Keywords: | Devaluation Elasticity of risk aversion Exchange rate risk Mean-variance model Trade |
Issue Date: | 2006 | Citation: | Broll, U., Wahl, J.E., Wong, W.-K. (2006). Elasticity of risk aversion and international trade. Economics Letters 92 (1) : 126-130. ScholarBank@NUS Repository. https://doi.org/10.1016/j.econlet.2006.01.031 | Abstract: | This paper 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. although the home currency is revaluating (devaluating), exports by the firm increase (decrease). This fact may contribute to the explanation of disturbing empirical results. © 2006 Elsevier B.V. All rights reserved. | Source Title: | Economics Letters | URI: | http://scholarbank.nus.edu.sg/handle/10635/22301 | ISSN: | 01651765 | DOI: | 10.1016/j.econlet.2006.01.031 |
| Appears in Collections: | Staff Publications |
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