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Exchange Rate Volatility and Exports: Estimation of Firms Risk PreferencesBroll, Udo, Mukherjee, Soumyatanu, Sensarma, Rudra 20 April 2017 (has links) (PDF)
In this companion paper to Broll and Mukherjee (2017), we empirically analyse how exchange rate volatilities affect firms optimal production and exporting decisions. The firms elasticity of risk aversion determines the direction of the impact of exchange rate risk on exports. Based on a flexible utility function that incorporates all possible risk preferences, a unique structurally estimable equation is used to estimate the risk aversion elasticities for a panel of Indian service sector (non-financial) firms over 2004-2015, using the quantile regression method.
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Exchange Rate Volatility and Exports: Estimation of Firms Risk PreferencesBroll, Udo, Mukherjee, Soumyatanu, Sensarma, Rudra 20 April 2017 (has links)
In this companion paper to Broll and Mukherjee (2017), we empirically analyse how exchange rate volatilities affect firms optimal production and exporting decisions. The firms elasticity of risk aversion determines the direction of the impact of exchange rate risk on exports. Based on a flexible utility function that incorporates all possible risk preferences, a unique structurally estimable equation is used to estimate the risk aversion elasticities for a panel of Indian service sector (non-financial) firms over 2004-2015, using the quantile regression method.
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