Blanchard, Michel; Peltrault, Frédéric - Université Paris-Dauphine (Paris IX) - 2003
, 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 …