The welfare effects of international trade with optimistic and pessimistic managers

Blanchard, Michel; Peltrault, Frédéric

Blanchard, Michel; Peltrault, Frédéric (2004), The welfare effects of international trade with optimistic and pessimistic managers, Economics Bulletin, 6, 15, p. 1-10

Voir/Ouvrir

EB-04F10008A.pdf (228.0Kb)

Type

Article accepté pour publication ou publié

Date

2004

Nom de la revue

Economics Bulletin

Volume

Numéro

Éditeur

Vanderbilt University

Pages

1-10

Métadonnées

Afficher la notice complète

Auteur(s)

Blanchard, Michel
Peltrault, Frédéric

Résumé (EN)

This paper investigates the welfare effects of international trade when technological idiosyncratic risk is distorted by optimistic and pessimistic managers. We show that free trade always improves the ex-ante welfare but sometimes lowers the ex-post welfare. Free trade commitment can be regretted ex-post.