Elasticity of risk aversion and international trade

Udo Broll (), Jack E. Wahl and Wing-Keung Wong ()
Additional contact information
Jack E. Wahl: University of Dortmund, Germany

Departmental Working Papers from National University of Singapore, Department of Economics

Abstract: 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.

Keywords: Exchange rate risk; trade; elasticity of risk aversion; meanvariance model; devaluation (search for similar items in EconPapers)
JEL-codes: F21 F31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2005-11
View list of references

Downloads: (external link)
http://www.fas.nus.edu.sg/ecs/pub/wp/wp0510.pdf (application/pdf)

Related works:
Working Paper: Elasticity of risk aversion and international trade (2005)
Journal Article: Elasticity of risk aversion and international trade (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nus:nusewp:wp0510

Access Statistics for this paper

More papers in Departmental Working Papers from National University of Singapore, Department of Economics
Contact information at EDIRC.
Series data maintained by ().