disagreements about these assets naturally lead to speculation, which represents a powerful economic force in the opposite direction … the speculation forces are present. I consider this question in a standard mean-variance framework. Financial assets … provide hedging services but they are also subject to speculation because traders do not necessarily agree about their payoffs …

crude oil, but our approach can be appliedto other commodities. We explain the meaning of "oil price speculation," how it …). Turningto the data, we calculate counterfactual prices that would have occurred from 1999 to 2012 in the absenceof speculation … commodity. It lets us determine whether speculation is consistentwith data on production, consumption, inventory changes, and …

common practice of categorically classifying trading by hedgers as hedging while trading by speculators as speculation, as … speculation …

. The theory predicts that asset prices carry a speculative premium that reflects the asset's marketability and depends on … anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity …

whether profitable speculation stabilizes asset markets …