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A Theory of International Trade Under Uncertainty

Editor

Listed:
  • Shell, Karl

Author

Listed:
  • Helpman, Elhanan

    (Galen L. Stone Professor of International Trade, Harvard University, Cambridge MA, USA)

  • Razin, Assaf

Abstract

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.

Suggested Citation

  • Helpman, Elhanan & Razin, Assaf, 1979. "A Theory of International Trade Under Uncertainty," Elsevier Monographs, Elsevier, edition 1, number 9780123396501 edited by Shell, Karl, December.
    • Handle: RePEc:eee:monogr:9780123396501
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    References listed on IDEAS

    as
    1. Bhagwati, Jagdish N. & Srinivasan, T. N., 1976. "Optimal trade policy and compensation under endogenous uncertainty: The phenomenon of market disruption," Journal of International Economics, Elsevier, vol. 6(4), pages 317-336, November.
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    More about this item

    Keywords

    goods; securities; financial markets; stock markets; commercial policy; consumption; savings;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F0 - International Economics - - General
    • F30 - International Economics - - International Finance - - - General

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