We investigate how globalization is reflected in asset prices. We use shipping costs to measure firms' exposure to globalization. Firms in low shipping cost industries carry a 7 percent risk premium, suggesting that their cash-flows covary negatively with investors' marginal utility. We find...

This article provides empirical evidence from the ‘first wave of globalization’ in the 19th century for the question as to how commodity markets integrated domestically and internationally. I apply a dynamic factor model borrowed from business cycle analysis that for the first time allows me...

Can Forward Freight Agreements be used to reduce the risk of freight rate fluctuations for market participants? Are FFA's useful for hedging purposes? Will new information immediately be incorporated in FFA prices? To answer these questions it has to be investigated if FFA prices are unbiased...