Measuring the Benefits from Futures Markets: Conceptual Issues

This paper illustrates that the usual consumer surplus approach to evaluation of the benefits of a futures market fails because of certain unobserved benefits. In particular, when futures markets provide benefits in the form of a reduced variability of future spot prices, the usual consumer surplus approach will systematically understate the benefits of futures markets.

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Year of publication:	2002
Authors:	Lien, Donald ; Quirk, James
Published in:	International Journal of Business and Economics. - College of Business, ISSN 1607-0704. - Vol. 1.2002, 1, p. 53-58
Publisher:	College of Business
Subject:	futures markets \| price variability \| consumer surplus

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Extent:	application/pdf text/html
Type of publication:	Article
Classification:	D6 - Welfare Economics ; G0 - Financial Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010600612