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| Frederic Peltrault and Michel Blanchard |
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| ''The welfare effects of international trade with optimistic and pessimistic managers'' |
| ( 2004, Vol. 6 No.15 ) |
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| This paper investigates the welfare effects of international trade when technological idiosyncratic risk is distorted by optimistic and pessimistic managers. We show that free trade always improves the ex-ante welfare but sometimes lowers the ex-post welfare. Free trade commitment can be regretted ex-post. |
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| Keywords: |
JEL: F1 - Trade: General
D8 - Information, Knowledge, and Uncertainty: General |
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| Manuscript Received : Oct 11 2004 | | Manuscript Accepted : Oct 11 2004 |
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