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This paper analyzes how increasing trade integration affects individual utility when the international specialization pattern is stochastic, i.e. when the number of varieties each country produces depends on the realization of a random variable. I employ a Ricardian continuum of goods model to...
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The law of association as exposed by David Ricardo and generalized by Ludwig von Mises cannot directly grasp what is at stake in exchanges involving specialization in uncertainty bearing. In this article we explain why the entrepreneurial function as conceptualized by Frank Knight and Mises does...
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Why do the poor have so many economic activities? According to one theory the poor do not specialize because relying on … one income source is risky. I test the theory by measuring the response of Thai rice farmers to conditional volatility in … theory in which households under-specialize because they cannot afford lumpy business investments. …
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