Article ID Journal Published Year Pages File Type
5060864 Economics Letters 2011 4 Pages PDF
Abstract
► A risk-averse exporting firm subject to liquidity constraints. ► The firm has to close out its hedge position prematurely. ► The management chooses an underhedge if prudence is positive. ► A liquidity constraint leads to less export. ► Firms that have sufficient financial resources can fully realize gains from trade.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Liquidity constrained exporters and trade
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