The Decision to Export and the Volatility of Sales

This paper studies the export decision of risk-averse firms in a model featuring aggregate uncertainty and no capital markets. Firms seeking to enter the foreign market face a sunk cost as well as a fixed participation cost every period they export. Using a calibrated version of the model, I show that firms are more likely to export when the correlation between domestic and foreign aggregate shocks is negative and when their degree of risk-aversion is higher. Counterfactual experiments show that exporting increases the volatility of total sales

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Year of publication:	2010
Authors:	Riano, Alejandro
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Volatilität \| Volatility \| Export \| Theorie \| Theory \| Absatz \| Sales \| Strategisches Management \| Strategic management \| Sunk Costs \| Sunk costs \| Risikopräferenz \| Risk attitude

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