Import Price Uncertainty And The Distribution Of Income
In this paper we estimate oil and nonoil import demand functions for the United States under the assumption that import prices are uncertain. Both import demand functions are formally derived from an expected utility maximization problem, treating imports as inputs to the technology. The model allows us to test for risk aversion and to assess the impact of uncertainty on the volume of imports, gross output, and the distribution of income. We find that uncertainty leads to a reduction in welfare, imports, and gross output. Moreover, it hurts labor relatively much more than capital. The impact of uncertainty, however, is found to be quite small. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 79 (1997)
Issue (Month): 4 (November)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- ChristisG. Tombazos, 2007. "Specialization, The Intermediate Nature Of Traded Products And The Myth Of Import Driven Wage Inequality In The United States," Pacific Economic Review, Wiley Blackwell, vol. 12(1), pages 117-128, 02.
- David S. Bullock & Philip Garcia & Kie-Yup Shin, 2005. "Measuring producer welfare under output price uncertainty and risk non-neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21, 03.
- Alberto Behar, 2005.
"Does training benefit those who do not get any? Elasticities of complementarity and factor price in South Africa,"
Economics Series Working Papers
244, University of Oxford, Department of Economics.
- Alberto Behar, 2008. "Does training benefit those who do not get any? Elasticities of complementarity and factor price in South Africa," Working Papers 73, Economic Research Southern Africa.
- Elie Appelbaum & Aman Ullah, 1996.
"Estimation of moments and production decisions under uncertainty,"
1996_9, York University, Department of Economics.
- Elie Appelbaum & Aman Ullah, 1997. "Estimation Of Moments And Production Decisions Under Uncertainty," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 631-637, November.
- Appelbaum, Elie, 2006. "A framework for empirical applications of production theory without expected utility," Journal of Economics and Business, Elsevier, vol. 58(4), pages 290-302.
- Christis G. Tombazos, 2003. "A Production Theory Approach to the Imports and Wage Inequality Nexus," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 42-61, January.
- Alan Woodland & Kishti Sen, 2010. "The volatility of Australian traded goods' prices," Applied Economics, Taylor & Francis Journals, vol. 42(30), pages 3849-3869.
- Andrew Muhammad, 2012. "Source Diversification and Import Price Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(3), pages 801-814.
- Tombazos, Christis G., 1999. "The impact of imports on the demand for labor in Australia," Economics Letters, Elsevier, vol. 62(3), pages 351-356, March.
- Appelbaum, Elie & Kohli, Ulrich, 1998.
"Import-Price Uncertainty, Production Decisions, and Relative Factor Shares,"
Review of International Economics,
Wiley Blackwell, vol. 6(3), pages 345-60, August.
- Elie Appelbaum & Ulrich Kohli, 1997. "Import-Price Uncertainty, Production Decisions, and Relative Factor Shares," Working Papers 1997_4, York University, Department of Economics.
- Elie Appelbaum, 1996. "An Application of Duality under Uncertainty, Elie Appelbaum," Working Papers 1996_8, York University, Department of Economics.
- Just, Richard E. & Just, David R., 2011. "Global identification of risk preferences with revealed preference data," Journal of Econometrics, Elsevier, vol. 162(1), pages 6-17, May.
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:79:y:1997:i:4:p:620-630. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Pollock-Nelson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.