시간비용과 자국소비편중현상에 대한 이론적 고찰
- Authors
- 이인구
- Issue Date
- 2010
- Keywords
- 시간비용; 자국소비편중; 위험분산; 대체탄력성; Time costs; Home bias; Risk sharing; Elasticity of substitution
- Citation
- East Asian Economic Review, v.14, no.2, pp.3 - 18
- Journal Title
- East Asian Economic Review
- Volume
- 14
- Number
- 2
- Start Page
- 3
- End Page
- 18
- URI
- http://scholarworks.bwise.kr/ssu/handle/2018.sw.ssu/15555
- DOI
- 10.11644/KIEP.JEAI.2010.14.2.216
- ISSN
- 2508-1640
- Abstract
- We study how time costs, combined with elasticity of substitution across home and foreign goods, can explain the home bias puzzle in a framework of flexible prices. Using a simple two-country model, we show that introducing time costs to an otherwise standard competitive model improves its ability to rationalize home bias in trade. Our analysis suggests that home bias and corresponding incomplete risk-sharing naturally arise in the presence of time costs, even under the assumption of complete financial markets and low elasticity of substitution between home and foreign goods.
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- Appears in
Collections - College of Economics and International Commerce > Department of Global Commerce > 1. Journal Articles
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