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The Role of Uncertainty in a Simple Temporary Equilibrium Model of International Trade with Quantity Rationing under Fixed Exchange Rates

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Schittko, U., Eckwert, B. The Role of Uncertainty in a Simple Temporary Equilibrium Model of International Trade with Quantity Rationing under Fixed Exchange Rates. Journal of Contextual Economics – Schmollers Jahrbuch, 103(5), 461-483. https://doi.org/10.3790/schm.103.5.461
Schittko, Ulrich K. and Eckwert, B. "The Role of Uncertainty in a Simple Temporary Equilibrium Model of International Trade with Quantity Rationing under Fixed Exchange Rates" Journal of Contextual Economics – Schmollers Jahrbuch 103.5, 1983, 461-483. https://doi.org/10.3790/schm.103.5.461
Schittko, Ulrich K./Eckwert, B. (1983): The Role of Uncertainty in a Simple Temporary Equilibrium Model of International Trade with Quantity Rationing under Fixed Exchange Rates, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 103, iss. 5, 461-483, [online] https://doi.org/10.3790/schm.103.5.461

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The Role of Uncertainty in a Simple Temporary Equilibrium Model of International Trade with Quantity Rationing under Fixed Exchange Rates

Schittko, Ulrich K. | Eckwert, B.

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 103 (1983), Iss. 5 : pp. 461–483

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Article Details

Schittko, Ulrich K.

Eckwert, B.

References

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Abstract

In a two period model of temporary equilibrium with quantity rationing and international trade under fixed exchange rates expectations concerning future prices and constraints play a significant role in classifying the effective equilibria and for the results of comparative statics. If the production sector can hold inventories (as in our model), the expectational structure influences significantly the sales but not the production and labor demand decisions. This surprising result depends on the way the production process is modelled, revealing the role of an atemporally formulated production structure