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The Behavior of Competitive Exporting Firms under Multiple Uncertainty

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Author Info
Viaene, Jean-Marie
Zilcha, Itzhak

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Abstract

The authors examine the behavior of a competitive risk-averse exporting firm subject to exchange rate and commodity price uncertainty, and to background uncertainty arising from cost and production. The aim of their study is fourfold--namely to look at: (1) the robustness of the results in traditional theory regarding the introduction of price uncertainty; (2) the role of forward-futures markets in the presence of background uncertainty; (3) the implications of this framework to the separation and the double-hedging theorems; and (4) the behavior of this firm when missing markets are gradually introduced. Copyright 1998 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 39 (1998)
Issue (Month): 3 (August)
Pages: 591-609
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Handle: RePEc:ier:iecrev:v:39:y:1998:i:3:p:591-609

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  1. Axel F. A. Adam-Müller, 2001. "What to Do if Dollar is Not a Dollar? The Impact of Inflation Risk on Production and Risk Management," CoFE Discussion Paper 01-06, Center of Finance and Econometrics, University of Konstanz. [Downloadable!]
  2. Moavia Alghalith, 2003. "Empirical Analysis under Additive/Multiplicative Output Uncertainty," CRIEFF Discussion Papers 0301, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
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  3. Kit Pong Wong, 2002. "Export-Flexible Firms And Forward Markets," International Economic Journal, Korean International Economic Association, vol. 16(3), pages 81-95, October. [Downloadable!] (restricted)
  4. Baldursson, Fridrik M. & von der Fehr, Nils-Henrik M., 2009. "Price volatility and risk exposure: on the interaction of quota and product markets," MPRA Paper 14994, University Library of Munich, Germany. [Downloadable!]
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  5. Anthony Creane & Kaz Miyagiwa, 2007. "Export, Foreign Direct Investment, and Joint Ventures: Learning the Rival's Costs through Propinquity," ISER Discussion Paper 0691, Institute of Social and Economic Research, Osaka University. [Downloadable!]
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  6. Moawia Alghalith, 2006. "Hedging decisions with price and output uncertainty," Annals of Finance, Springer, vol. 2(2), pages 225-227, March. [Downloadable!] (restricted)
  7. Paul A. de Hek, 2005. "Uncertain Technological Change under Capital Mobility," Tinbergen Institute Discussion Papers 05-033/2, Tinbergen Institute. [Downloadable!]
  8. Moawia Alghalith, 2008. "Hedging and production decisions under uncertainty: A survey," Quantitative Finance Papers 0810.0917, arXiv.org. [Downloadable!]
  9. Jens, EISENSCHMIDT & Klaus, WAELDE, 2003. "International Trade, Hedging and the Demand for Forward Contracts," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2003022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
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  10. Moavia Alghalith & Aredishir J. Dalal, 2002. "The Choice Between Multiplicative and Additive Output Uncertainty," CRIEFF Discussion Papers 0209, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
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