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
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.:
- 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.
- 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, 2006. "A framework for empirical applications of production theory without expected utility," Journal of Economics and Business, Elsevier, vol. 58(4), pages 290-302.
- 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.
- 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.
- Elie Appelbaum, 1996. "An Application of Duality under Uncertainty, Elie Appelbaum," Working Papers 1996_8, York University, Department of Economics.
- 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, 1997.
"Estimation Of Moments And Production Decisions Under Uncertainty,"
The Review of Economics and Statistics,
MIT Press, vol. 79(4), pages 631-637, November.
- Elie Appelbaum & Aman Ullah, 1996. "Estimation of moments and production decisions under uncertainty," Working Papers 1996_9, York University, Department of Economics.
- 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.
- 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.
- 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.
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 references are entirely missing, you can add them using this form.