The Role of Uncertainty in a Simple Temporary Equilibrium Model of International Trade with Quantity Rationing under Fixed Exchange Rates
Year: 1983
Author: Schittko, Ulrich K., Eckwert, B.
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 103 (1983), Iss. 5 : pp. 461–483
Abstract
In a two period model of temporary equilibrium with quantity rationing and international trade under fixed exchange rates expectations concerning future prices and constraints play a significant role in classifying the effective equilibria and for the results of comparative statics. If the production sector can hold inventories (as in our model), the expectational structure influences significantly the sales but not the production and labor demand decisions. This surprising result depends on the way the production process is modelled, revealing the role of an atemporally formulated production structure
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.103.5.461
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 103 (1983), Iss. 5 : pp. 461–483
Published online: 1983-05
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 23
Author Details
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