Showing 1 - 10 of 19
Producers have a wide variety of risk management instruments available. How do producers make a choice of risk management instruments? Using the recently developed choice bracketing framework, we examine what risk management strategies producers use and identify the factors that drive their risk...
Persistent link: https://www.econbiz.de/10009442889
Heterogeneity, i.e., the notion that individuals respond differently to economic stimuli, can have profound consequences for the interpretation of behavior and the formulation of agricultural policy. This paper compares and evaluates three grouping techniques that can be used to account for...
Persistent link: https://www.econbiz.de/10009446188
Recent accusations against speculators in general and long-only commodity index funds inparticular, include: increasing market volatility, distorting historical price relationships, andfueling a rapid increase and decrease in commodity inflation. Some researchers have argued thatthese market...
Persistent link: https://www.econbiz.de/10009446395
We model a futures exchange's clearinghouse as a "bank" holding a portfolio of credit lines available to its clearing members and collateralized with clearing margins or, equivalently, a portfolio of short European put basket options. Consequently, the "bank" model measures the clearinghouse's...
Persistent link: https://www.econbiz.de/10005483643
Considerable disagreement exists about the most appropriate characterization of farm-level yield distributions. Yet, the economic importance of alternate yield distribution specifications on insurance valuation, product designs and farm-level risk management has not been investigated or...
Persistent link: https://www.econbiz.de/10005493484
This research examines risk-return tradeoffs across a full range of crop insurance products and coverage levels. Results indicate that farm-level products reduce risk for low probability events, but that risk reductions often are not large for events that occur with more regularity. Risk...
Persistent link: https://www.econbiz.de/10005460268
The purpose of this report is to provide a preliminary summary of the results of a survey designed to help answer the questions about subscriber use of market advisory services. Importantly, this research is a cooperative partnership between the University of Illinois and the Data Transmission...
Persistent link: https://www.econbiz.de/10005468873
The Masters Hypothesis is the claim that unprecedented buying pressure in recent years from commodity index investors created massive bubbles in food and energy prices. A number of recent studies investigate the empirical relationship between index investment and price movements in agricultural...
Persistent link: https://www.econbiz.de/10010911058
Persistent link: https://www.econbiz.de/10010912232
This study evaluates the impacts on gross revenue distributions of the use of alternative crop insurance products across different coverage levels and across locations with differing yield risks. Results are presented in terms of net costs, values-at-risk, and certainty equivalent returns...
Persistent link: https://www.econbiz.de/10010914035