Theoretical and Applied Economics
No. 4 / 2020 (625), Winter
Welfare enhancing uncertainty
Economics Department, Calcutta University, Kolkata, India
Abstract. In this paper it is shown that one of the intrinsic characteristics of the canonical Melitz (2003) type framework is that inclusion of further uncertainties enhances the aggregate welfare of the given economy, though reducing the total varieties available. Here the uncertainty assumed is, payment risk associated with the exchange in international market. The key to such an occurrence is the fact that uncertainty acts like an increased trade costs leading to added exit of low productive firms. Since uncertainty seems to be desirable any efforts to decrease such can be deemed expensive. However, this also proves for a fact that the developing countries with overall lower productivity and higher uncertainty will lose out its import and export share to international competition in the global market.
Contents
The European Union in the face of the prospect of achieving major objectives in the conditions of the pandemic and economic-financial crisis
What determines the portfolio investment flows to Central and Eastern European Countries in the European Union 2001-2017?
Analysis of the correlation between taxation indicators and economic growth at the macroeconomic level in European Union and Romania
Measuring Adobe Company performance from the perspective of a Complex Adaptive System
Welfare enhancing uncertainty
Business process modeling. Using Unified Modeling Language to streamline the design of the TO-BE system within a company
Static and dynamic analysis of intra-industry trade of BRICS countries
Fossil fuel consumption, economic growth and CO2 emissions. Causality evinced from the BRICS world
Methods used in risk financing
Is there a relationship between economic welfare and innovation performance? Evidence from selected European countries
Analyzing Romania GDP: Final consumption, gross investment, and net exports influence compared to previously published models
Analysis of the natural movement of the population under the spectrum of the health crisis
On the relationship between economic growth and government debt for Bulgaria. Test of the Reinhart-Rogoff hypothesis
Testifying the role of regulatory environment in trade facilitation: Impact on intra-regional trade in South-Asia
India and trade blocs: A gravity model analysis
Predicting the volatility in stock return of emerging economy: An empirical approach
Portfolio optimization with VaR approach: A comparative analysis for Japan, London, New York and India
Income-dependent impacts of financial development and human capital on economic growth. A non-stationary panel analysis
Monetary policy and exchange rate pass-through in India
Impact of medium of instruction in education on economic growth and development
Institutions and economic growth: A comparative analysis of developing and developed countries based on institutionalized social technologies index
Exports, imports and economic growth in India: An empirical analysis
BEPS – A challenge for the increasing budget revenues in the process of digitalization
Implementation of public policies. The compatibility of the model of public policy with the target space of the policy
Fiscal sustainability in Romania