Using a two-sector one-factor comparative-advantage-based trade model un- der uncertainty, we show that: 1) to specialize according to comparative advan- tages may be sub-optimal in a multi-period setting; 2) there are conditions under which, even if agents are risk-neutral, the decentralized solution is inefficient and characterized by overspecialization.

Uncertainty and the optimal level of specialization

VALENTE, MARCO
2012-01-01

Abstract

Using a two-sector one-factor comparative-advantage-based trade model un- der uncertainty, we show that: 1) to specialize according to comparative advan- tages may be sub-optimal in a multi-period setting; 2) there are conditions under which, even if agents are risk-neutral, the decentralized solution is inefficient and characterized by overspecialization.
File in questo prodotto:
Non ci sono file associati a questo prodotto.
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11697/19705
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 1
  • ???jsp.display-item.citation.isi??? ND
social impact