Implications of financial transaction costs on the real economy: A note

This note studies the influence of a financial transaction tax and transaction costs on the optimal production and hedging strategies of a duopoly. Firms are exposed to demand uncertainty that leads to price risk and can hedge their risk exposure on a forward market. However, the forward position is...

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Bibliographic Details
Main Author: Matthias Pelster
Format: Article
Language:English
Published: VIZJA University 2014-03-01
Series:Contemporary Economics
Online Access:http://ce.vizja.pl/en/download-pdf/id/337
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