Summary The value at risk measure has become a widespread risk management concept in many different types of financial organizations. The value at risk concept is the attempt to summarize in a single number the return risk in a portfolio of financial assets. This paper studies the impact of the...

Summary The aim of this study is to analyze the importance of the elasticity of risk aversion with regard to an increase in exchange rate risk for exports and hedging in an international firm. Mean-variance preferences allow for an immediate study of the entailed substitution and income effect....

Summary The gravity equation for international trade is probably the most important tool in international economics to explain and estimate trade flows. In its simplest form, it states that the exports between any two given countries are a multiplicative function of these countries’ economic...