The welfare effects of international trade with optimistic and pessimistic managers

Frederic Peltrault () and Michel Blanchard ()
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Frederic Peltrault: EURIsCO University of Paris Dauphine

Economics Bulletin, 2004, vol. 6, issue 15, 1-10

Abstract: This paper investigates the welfare effects of international trade when technological idiosyncratic risk is distorted by optimistic and pessimistic managers. We show that free trade always improves the ex-ante welfare but sometimes lowers the ex-post welfare. Free trade commitment can be regretted ex-post.

JEL-codes: D8 F1 (search for similar items in EconPapers)
Date: 2004-10-11
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-04f10008

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