Showing 1 - 2 of 2
welfare gain from moving to a world with frictionless trade. In this model, a country's trade potential depends on only the …
Persistent link: https://www.econbiz.de/10012456528
Common wisdom dictates that uncertainty impedes trade--we show that uncertainty can fuel more trade in a simple general equilibrium trade model with information frictions. In equilibrium, increases in uncertainty increase both the mean and the variance in returns to exporting implying that trade...
Persistent link: https://www.econbiz.de/10012479559