dc.contributor.author | Berka, Martin | |
dc.contributor.author | Crucini, Mario J. | |
dc.contributor.author | Wang, Chih-Wei | |
dc.date.accessioned | 2020-09-14T01:39:53Z | |
dc.date.available | 2020-09-14T01:39:53Z | |
dc.date.issued | 2011 | |
dc.identifier.uri | http://hdl.handle.net/1803/15912 | |
dc.description.abstract | Cole and Obstfeld (1991) exposited a classic result where equilibrium movements in the terms of trade could make ex ante risk-sharing arrangements unnecessary: a unity elasticity of substitution across goods and production specialization. This paper extends their model to N countries and M commodities (N > M). Here the terms of trade provides insurance against commodity-specific shocks, not country-specific shocks. Using commodity-level production data at the national level and world commodity prices we document significant terms of trade variability and positive responses of nation-specific production to terms of trade improvements. The endogenous terms of trade insurance mechanism highlighted in CO is virtually non-existent. | |
dc.language.iso | en_US | |
dc.publisher | Vanderbilt University | en |
dc.subject | Risk-sharing; developing countries; terms of trade | |
dc.subject | JEL Classification Number: F3 | |
dc.subject | JEL Classification Number: F4 | |
dc.subject.other | | |
dc.title | International Risk-Sharing and Commodity Prices | |
dc.type | Working Paper | en |
dc.description.department | Economics | |