theory, practice, and policy. Using seven different methods on microenterprise loan applicants, we find striking results …

futures contracts. Their hedging demand is met by financial intermediaries who act as speculators, but are constrained in risk …-taking. Increases (decreases) in producers’ hedging demand (the risk-bearing capacity of speculators) increase the costs of hedging … 1980-2006, we show that producers’ hedging demand - proxied by their default risk - forecasts spot prices, futures prices …

This paper examines and compares the effectiveness of hedging and buffer-stock strategies for stabilizing the revenues …

stochastic. It then uses the results to explain the dynamics of hedging. Bankruptcy rules are important determinants of corporate … produce the same prices, they can have very different hedging implications. We show that empirical results on the relation …

This paper proposes a theory of twin banking-currency crises in which both fundamentals and self-fulfilling beliefs …

will allocate cash flows into cash holdings if their hedging needs are high (i.e., if the correlation between operating … if their hedging needs are low. The empirical examination of debt and cash policies of a large sample of firms reveals … evidence that is consistent with our theory. In particular, our evidence shows that financially constrained firms with high …