Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/48166 
Year of Publication: 
2011
Series/Report no.: 
Dresden Discussion Paper Series in Economics No. 03/11
Publisher: 
Technische Universität Dresden, Fakultät Wirtschaftswissenschaften, Dresden
Abstract: 
The paper analyzes the interactions between the precision of information, trade and welfare within a decision framework of an exporting firm. Information in a financial market is described in terms of a publicly observable signal. With higher transparency, the signal conveys more precise information about the random foreign exchange rate. More precise information about exchange rate changes has ambiguous effects on trade and welfare which depend critically on technology of the firm and the degree of risk aversion.
Subjects: 
exchange rate risk
trade
futures market
market transparency
value of information
JEL: 
F11
F23
G14
G15
Document Type: 
Working Paper

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