IDEAS home Printed from https://ideas.repec.org/a/aea/apandp/v113y2023p65-69.html
   My bibliography  Save this article

Interest Rates and World Trade: An "Austrian" Perspective

Author

Listed:
  • Pol Antràs

Abstract

I develop a framework to study the interplay between world trade and interest rates. The model incorporates an explicit notion of time and production length, in the "Austrian" tradition of Bohm-Bawerk (1889). Changes in the interest rate affect production lengths, labor productivity, and the financial costs of exporting. I decompose the response of the volume of world trade to changes in the interest rate into four components: a labor productivity effect, a "propensity to consume out of labor income" effect, a "temporal dimension of variable trade costs" effect, and a "selection into exporting" effect.

Suggested Citation

  • Pol Antràs, 2023. "Interest Rates and World Trade: An "Austrian" Perspective," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 65-69, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:65-69
    DOI: 10.1257/pandp.20231026
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20231026
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/pandp.20231026.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/pandp.20231026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:apandp:v:113:y:2023:p:65-69. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.