Blanchard, Michel; Peltrault, Frédéric - Université Paris-Dauphine (Paris IX) - 2003
Taking seriously the stylized fact that some countries are more risk averse than others regarding business activities …, we examine the consequences on international trade and welfare. When risk is idiosyncratic to each manager's project …, international differences in manager's risk-aversion distribution become the determinant of trade pattern. Welfare analysis shows …