Optimism, Pessimism, and the Gains from Trade Reportar como inadecuado




Optimism, Pessimism, and the Gains from Trade - Descarga este documento en PDF. Documentación en PDF para descargar gratis. Disponible también para leer online.

Abstract

This paper examines the debate over the gains from trade when international differencesin the risk perception of heterogeneous managers provide the basis for trade: the relativelyoptimistic country exports the risky commodity whereas the relatively pessimistic countryexports the certain commodity. We show that optimal trade policy depends on the choice ofthe welfare criterion, as ex-ante and ex-post criteria often lead to opposing conclusions. Themore optimistic country is always better off ex-ante whereas it can end up worse off ex-post.The more pessimistic country may be worse off-better off ex-ante but better off-worse offaccording to the ex-post welfare criterion.



Item Type: MPRA Paper -

Original Title: Optimism, Pessimism, and the Gains from Trade-

Language: English-

Keywords: Idiosyncratic Risk, Optimism, Pessimism, Heterogeneity, Trade Losses, ex-ante and ex-post welfare-

Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade OrganizationsD - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and UncertaintyF - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade-





Autor: Blanchard, Michel

Fuente: https://mpra.ub.uni-muenchen.de/6342/







Documentos relacionados