Should Risk Averse Countries be Trade Averse?

dc.contributor.author	Blanchard, Michel
dc.contributor.author	Peltrault, Frédéric
dc.date.accessioned	2009-05-19T12:25:43Z
dc.date.available	2009-05-19T12:25:43Z
dc.date.issued	2003
dc.identifier.uri	https://basepub.dauphine.fr/handle/123456789/134
dc.language.iso	en	en
dc.subject	idiosyncratic risk	en
dc.subject	inferior trade	en
dc.subject	International trade	en
dc.subject	risk-aversion	en
dc.subject.ddc	337	en
dc.subject.classificationjel	F10	en
dc.subject.classificationjel	F13	en
dc.title	Should Risk Averse Countries be Trade Averse?	en
dc.type	Communication / Conférence
dc.description.abstracten	Taking seriously the stylized fact that some countries are more risk averse than others regarding business activities, we examine the consequences on international trade and welfare. When risk is idiosyncratic to each manager's project, international differences in manager's risk-aversion distribution become the determinant of trade pattern. Welfare analysis shows that the less risk averse country specialized in the risky commodity is always better off with free trade. But the more risk averse country specialized in unrisky commodity can be worse off. Consequently, risk averse countries can be "trade averse". Moreover, the world's welfare is sometimes decreasing.	en
dc.identifier.citationpages	18	en
dc.description.sponsorshipprivate	oui	en
dc.subject.ddclabel	Economie internationale	en
dc.relation.conftitle	EUROPEAN TRADE STUDY GROUP	en
dc.relation.confdate	2003-09
dc.relation.confcity	Madrid	en
dc.relation.confcountry	Espagne	en