In usual pricing approaches for weather derivatives, forward-looking information such as meteorological weather … forecasts is not considered. Thus, important knowledge used by market participants is ignored in theory. By extending a standard … model for the daily temperature, this paper allows the incorporation of meteorological forecasts in the framework of weather …

Forecasting based pricing of Weather Derivatives (WDs) is a new approach in valuation of contingent claims on … nontradable underlyings. Standard techniques are based on historical weather data. Forward-looking information such as … each location) that allows the incorporation of meteorological forecasts in the framework of WD pricing. We study weather …

In periods of unusual weather, forecasters face a problem of interpreting economic data: Which part goes back to the … underlying economic trend and which part arises from a special weather effect? In this paper, we discuss ways to disentangle … weather-related from business cycle-related influences on economic indicators. We find a significant influence of weather …