This paper proposes an international trade model under uncertainty in which international differences in financial development provide the basis for trade. When preferences exhibit risk vulnerability as defined by Gollier and Pratt [1996], financial development reduces individuals’ risk...

À la suite d’un Livre Vert consacré à l’esprit d’entreprise, la Commission européenne s’est récemment inquiétée du déficit d’entrepreneurs de l’Europe par rapport aux États-Unis. Cet article présente un modèle de commerce international avec incertitude qui étudie les...

This paper investigates the welfare effects of international trade when technological idiosyncratic risk is distorted by optimistic and pessimistic managers. We show that free trade always improves the ex-ante welfare but sometimes lowers the ex-post welfare. Free trade commitment can be...

Differences between domestic financial systems can lead to international trade. A country with relatively developed or decentralized financial systems will export innovative commodities while a country with less developed and centralized financial systems will export traditional commodities....

Taking seriously the stylized fact that some countries are more risk averse than others regarding business activities, 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...

Taking seriously the stylized fact that some countries are more risk averse than others regarding business activities, 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...

Following the Green Paper dealing with the entrepreneurship in Europe, the European Commission put forward the thesis that Europe suffers from an «entrepreneurship deficit» in comparison to the US. This paper presents a model dealing with the consequences of managers’ optimism and pessimism...