Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5055704 | Economic Modelling | 2009 | 4 Pages |
Abstract
The paper examines the economic role of modelling information on the decision problem of an exporting firm under exchange rate risk and hedging. Information is described in terms of market transparency, i.e., a publicly observable signal conveys more information about the random foreign exchange rate. We analyze the interaction between market transparency and the ex ante expected utility of the exporting firm. It is shown that more transparency on the foreign exchange market may result in higher or lower export production.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Udo Broll, Bernhard Eckwert,