A Theory of International Trade Under Uncertainty
Published on 10. May 2014
202 pages
978-1-4832-7151-4 (ISBN)
Description
A Theory of International Trade Under Uncertainty analyzes international trade in goods and securities in the presence of uncertainty using an integrated general equilibrium framework that recognizes the dependence of markets for goods on financial markets and vice versa. The usefulness of this approach is demonstrated by means of applications to questions such as the effects of international trade on resource allocation, tariff policy, and intervention in financial capital markets. Results which are important for theoretical as well as policy oriented applications are presented. Comprised of 11 chapters, this volume begins with an introduction to some of the fundamental elements of the deterministic Ricardian and Heckscher-Ohlin theories of international trade. Relevant elements from the theory of decision making under uncertainty are then discussed, along with the behavior of firms and consumers-investors in an economy with stock markets. Subsequent chapters focus on problems of commercial policy; gains from trade in goods and securities; and issues of intervention in financial capital markets. The book concludes by describing a dynamic model of international trade that contains an infinite horizon and takes into account the trade-off between present period consumption and savings. An example that illustrates an equilibrium structure of the dynamic model is presented. This monograph is intended for economists who are interested in international trade or international finance, including graduate students who specialize in these fields.
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Elhanan Helpman | Assaf Razin
Theory of International Trade Under Uncertainty
Book
01/1978
Academic Press
€52.08
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Persons
Elhanan Helpman is Galen L. Stone Professor of International Trade, Harvard University, Cambridge MA, USA
Content
PrefaceChapter 1 Introduction ReferencesChapter 2 Elements of the Deterministic Theory of International Trade 2.1 The Ricardian Theory 2.2 The Heckscher-Ohlin Theory ReferencesChapter 3 Elements of the Theory of Economic Decision Making Under Uncertainty 3.1 Expected Utility, Risk Aversion, and Portfolio Choice 3.2 Increasing Risk 3.3 Markets for Risk Sharing 3.4 Individual Decision Making Under Uncertainty: An Application ReferencesChapter 4 A Critical Survey of the Literature 4.1 The General Framework 4.2 Ex-Ante Trading Decisions 4.3 Ex-Post Commodity Trading Decisions 4.4 Financial Markets ReferencesChapter 5 A Stock Market Economy 5.1 The Framework 5.2 Firms 5.3 Consumers 5.4 An Alternative Specification 5.5 Equilibrium ReferencesChapter 6 A Diagrammatic Exposition of Stock Market Equilibrium and the Balance of Payments 6.1 The Basic Problems 6.2 No International Trade in Securities 6.3 International Trade in Securities 6.4 Stock Market Equilibrium with a Safe Bond ReferencesChapter 7 The Basic Propositions of the Pure Theory of International Trade Revised 7.1 Comparative Costs Theory 7.2 Factor-Price Equalization 7.3 The Stolper-Samuelson Theorem 7.4 The Rybczynski Theorem 7.5 The Heckscher-Ohlin Theorem ReferencesChapter 8 Commercial Policy 8.1 The Deterministic Model 8.2 Protection Under Uncertainty 8.3 Welfare Losses from Tariffs ReferencesChapter 9 Gains from Trade 9.1 Gains from Trade for a Small Country 9.2 An Improvement in the Terms of Trade 9.3 Gains from Restricted Trade 9.4 Gains from Trade for a Large Country ReferenceChapter 10 Efficient Intervention in Financial Capital Markets 10.1 First-Best Taxation of Equities 10.2 A Second-Best Argument for Equity Taxation 10.3 Optimal Intervention in the Presence of Confiscation Risks ReferencesChapter 11 A Dynamic Reformulation 11.1 The Model 11.2 A Diagrammatic Exposition 11.3 The Basic Propositions 11.4 An Example ReferencesAppendix A Derivation of Equation (8.15)Appendix B Derivation of the Optimal Policies for Section 10.3Index
