This paper studies the endogenous determination of pricing to market, in a model with time dependent transportation costs, where the future terms of trade are random. Allowing time dependent transportation costs adds a dimension of investment to the pre-buying of imports, implying that financial...

This paper studies the endogenous determination of pricing to market, in a model with time dependent transportation costs, where the future terms of trade are random. Allowing time dependent transportation costs adds a dimension of investment to the pre-buying of imports, implying that financial...

This study reports that numerous direct and indirect international risk-sharing mechanisms exist, including (1) self-insurance at the state level, (2) market-based tools, (3) international labor mobility, (4) implicit hedges provided by macroeconomic flexibility, and (5) transfers and access to...