Import Price Uncertainty, Production Decisions, and Relative Factor Shares
REVIEW OF INTERNATIONAL ECONOMICS MS#6256, January 31,1998
Posted: 24 Mar 1998
Abstract
In this paper, we estimate the effects of import-price uncertainty on factor income in Switzerland. We use the production-theory approach to derive the import demand function from an expected utility maximization problem, treating imports as an input to the technology. The model is also used to test for risk aversion and to assess the impact of uncertainty on the volume of imports and gross output. We find evidence that, for most years, labor has been relatively more vulnerable to uncertainty than capital.
JEL Classification: F11, D33, D81, C51
Suggested Citation: Suggested Citation
Kohli, Ulrich and Appelbaum, Elie, Import Price Uncertainty, Production Decisions, and Relative Factor Shares. REVIEW OF INTERNATIONAL ECONOMICS MS#6256, January 31,1998
, Available at SSRN: https://ssrn.com/abstract=69374
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.