Export Decision under Risk
José De Sousa,
Anne-Célia Disdier and
No 265728, Working Papers from Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2)
Using firm and industry data, we unveil two empirical regularities: (i) Demand uncertainty not only reduces export probabilities but also decreases export quantities and increases export prices; (ii) The most productive exporters are more affected by higher industry-wide expenditure volatility than are the least productive exporters. We rationalize these regularities by developing a new firm-based trade model wherein managers are risk averse. Higher volatility induces the reallocation of export shares from the most to the least productive incumbents. Greater skewness of the demand distribution and/or higher trade costs weaken this effect. Our results hold for a large class of consumer utility functions.
Keywords: International; Relations/Trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-int and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Working Paper: Export Decision under Risk (2017)
Working Paper: Export Decision under Risk (2016)
Working Paper: Export decision under risk (2015)
Working Paper: Export Decision under Risk (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:inrasl:265728
Access Statistics for this paper
More papers in Working Papers from Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().