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International Income Transfers under Technological Uncertainty

Author

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  • Takeda, Shiro

Abstract

This paper examines the effects of international income transfers in the presence of technological uncertainty and shows the following results. First, a transfer paradox can occur only if the rates of return from assets are not equalized between the donor and the recipient. Second, the more risk-averse consumers are in both countries, the more likely a transfer paradox is to occur.

Suggested Citation

  • Takeda, Shiro, 2001. "International Income Transfers under Technological Uncertainty," Discussion Papers 2001-01, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:econdp:2001-01
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    Keywords

    Transfer; Uncertainty; Attitude toward risk;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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