2014 Fiscal Year Final Research Report
Product quality and consumption risk
| Project/Area Number |
25885071
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| Research Category |
Grant-in-Aid for Research Activity Start-up
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| Allocation Type | Single-year Grants |
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| Research Field |
Economic theory
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| Research Institution | Sophia University |
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Principal Investigator |
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| Project Period (FY) |
2013-08-30 – 2015-03-31
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| Keywords | 財の品質 / 実質為替レート / リスクシェアリング / 異質な企業 / 国際情報交換 |
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| Outline of Final Research Achievements |
Not only changes in prices and quantity but also those in the number of product varieties and quality can be a source of consumption risk. What would be then the nature of international risk sharing in the presence of such consumption risk induced by changes in product quality and the number of product varieties? In this research, first we successfully reproduce a positive correlation between price of exporting goods and its product quality as observed in the data. Second, we analytically show that the possibility of perfect risk sharing as we obtain with complete financial markets even without any international borrowing and lending. Finally, our theoretical model successfully reproduce the observed correlation between relative consumption across countries and the real exchange rate.
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| Free Research Field |
国際金融論、国際貿易論
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