Arbeitspapier
Multiple uncertainty, forward-futures markets and international trade
The optimum behavior of a competitive risk-averse international trader who supplies or demands commodities invoiced in foreign currency is examined when his profits are subject to several forms of risk: production, domestic cost, the exchange rate and the commodity price.The focus of the analysis lies in the optimality conditions for the level of trade and the extent of forward exchange and commodity futures commitments.New results on the implications of the framework for the separation and the double-hedging theorems are derived.The behavior of the same firm with and without complete markets is compared and conditions are obtained for a domestic price guarantee or a gradual introduction of missing markets to promote the level of international trade.
- ISBN
-
951-686-441-4
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Finland Discussion Papers ; No. 3/1995
- Classification
-
Wirtschaft
Criteria for Decision-Making under Risk and Uncertainty
Expectations; Speculations
Trade: Other
Foreign Exchange
- Event
-
Geistige Schöpfung
- (who)
-
Viaene, Jean-Marie
Zilcha, Itzhak
- Event
-
Veröffentlichung
- (who)
-
Bank of Finland
- (where)
-
Helsinki
- (when)
-
1995
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Viaene, Jean-Marie
- Zilcha, Itzhak
- Bank of Finland
Time of origin
- 1995
Other Objects (12)
Relevance of uncertainty on the volatility and trading volume in the US Treasury bond futures market
The co-movements along the forward curve of natural gas futures: a structural view
What explains risk premia in crude oil futures?
Inflationary household uncertainty shocks
Inflationary household uncertainty shocks
Multiple uncertainty, forward-futures markets and international trade
Measuring household uncertainty in EU countries
The real effects of overconfidence and fundamental uncertainty shocks
The power of forward guidance and the fiscal theory of the price level
Money as an indicator variable for monetary policy when money demand is forward looking
Global uncertainty
Forecasting with a forward-looking DGE model: combining long-run views of financial markes with macro forecasting
Relevance of uncertainty on the volatility and trading volume in the US Treasury bond futures market
The co-movements along the forward curve of natural gas futures: a structural view
What explains risk premia in crude oil futures?
Inflationary household uncertainty shocks
Inflationary household uncertainty shocks
Multiple uncertainty, forward-futures markets and international trade
Measuring household uncertainty in EU countries
The real effects of overconfidence and fundamental uncertainty shocks
The power of forward guidance and the fiscal theory of the price level
Money as an indicator variable for monetary policy when money demand is forward looking
Global uncertainty
Forecasting with a forward-looking DGE model: combining long-run views of financial markes with macro forecasting
Relevance of uncertainty on the volatility and trading volume in the US Treasury bond futures market
The co-movements along the forward curve of natural gas futures: a structural view
What explains risk premia in crude oil futures?
Inflationary household uncertainty shocks
Inflationary household uncertainty shocks
Multiple uncertainty, forward-futures markets and international trade
Measuring household uncertainty in EU countries
The real effects of overconfidence and fundamental uncertainty shocks
The power of forward guidance and the fiscal theory of the price level
Money as an indicator variable for monetary policy when money demand is forward looking
Global uncertainty