This paper uses a simple portfolio optimisation framework to analyse both the direct impact of liberalisation measures and the impact of reduced relative riskiness of exporting versus producing for the Mexican domestic market arising from a commitment to an outward orientation. It allows for...

This paper studies the Chilean economy as a two-period representative agent economy in which economic liberalisation is modelled as adding a positive random variable to the marginal product of capital. It shows liberalisation always raises the expected utility of the agents. Agents may respond...