This paper investigates non-linearity in spatial processes models and allows for a gradual regime-switching structure in the form of a smooth transition autoregressive process. Until now, applications of the smooth transition autoregressive (STAR) model have been largely confined to the time...

In many studies the assumption is made that traders only encounter one type of price risk. In reality, however, traders are exposed to multiple price risks, and often have several relevant derivative instruments available with which to hedge price uncertainty. In this study, commodity, foreign...