Risk Aversion and Optimal Trade Dependency
Risk Aversion and Optimal Trade Dependency
| dc.creator | Cabral, Celia C. | |
| dc.date | 1998-05-01 | |
| dc.date.accessioned | 2022-11-03T21:18:21Z | |
| dc.date.available | 2022-11-03T21:18:21Z | |
| dc.identifier | https://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/2842 | |
| dc.identifier.uri | https://repositorioslatinoamericanos.uchile.cl/handle/2250/5047809 | |
| dc.description | This paper shows that a highly indebted country's (HIC) optimal dependency on international trade depends on the country's degree of risk aversion. Risk aversion affects optimal trade dependency directly through consumption smoothing across different states of the world (intratemporally) and indirectly through consumption smoothing across different time periods (intertemporally). When the probability of default is high (low) and the interest rate on consumption borrowing is large (small) relatively to the discount rate, optimal openness to international trade increases (decreases) with risk aversion while optimal consumption borrowing decreases (increases). Otherwise, results are uncertain. | en-US |
| dc.description | Neste trabalho, mostra-se que o grau ótimo de dependência externa de uma economia depende do seu grau de aversão ao risco. A aversão ao risco afeta a dependência externa ótima diretamente (intra-temporalmente) como indiretamente (inter-temporalmente). Quando a probabilidade de inadimplência é alta (baixa) e a taxa de juro em empréstimos para consumo é grande (pequena) relativamente a taxa de desconto social, a dependência externa ótima aumenta (diminui) com a aversão ao risco, enquanto que o volume ótimo de empréstimos para consumo diminui (aumenta). Nos outros casos, os resultados são incertos. | pt-BR |
| dc.format | application/pdf | |
| dc.language | eng | |
| dc.publisher | Sociedade Brasileira de Econometria | en-US |
| dc.relation | https://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/2842/1753 | |
| dc.source | Brazilian Review of Econometrics; Vol. 18 No. 1 (1998); 73-94 | en-US |
| dc.source | Brazilian Review of Econometrics; v. 18 n. 1 (1998); 73-94 | pt-BR |
| dc.source | 1980-2447 | |
| dc.subject | Trade dependency | en-US |
| dc.subject | openness | en-US |
| dc.subject | risk aversion. | en-US |
| dc.subject | 720. | en-US |
| dc.subject | Trade dependency | pt-BR |
| dc.subject | openness | pt-BR |
| dc.subject | risk aversion. | pt-BR |
| dc.subject | 720. | pt-BR |
| dc.title | Risk Aversion and Optimal Trade Dependency | en-US |
| dc.title | Risk Aversion and Optimal Trade Dependency | pt-BR |
| dc.type | info:eu-repo/semantics/article | |
| dc.type | info:eu-repo/semantics/publishedVersion |