Liquidity constrained exporters and trade

Udo Broll and Jack E. Wahl

Economics Letters, 2011, vol. 111, issue 1, 26-29

Abstract: We present a model of a risk-averse exporting firm subject to liquidity constraints. We show that preferences and expectations become important for optimum export and hedging decisions. Only firms that have sufficient financial resources can fully materialize gains from trade.

Keywords: Liquidity; constraint; Trade; Futures; Hedging (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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