Stabilizing Speculative Commodity Markets

Author : S. Ghosh
Publisher : Oxford University Press, USA
ISBN 13 :
Total Pages : 464 pages
Book Rating : 4.84/5 ( download)

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Download or read book Stabilizing Speculative Commodity Markets written by S. Ghosh and published by Oxford University Press, USA. This book was released on 1987 with total page 464 pages. Available in PDF, EPUB and Kindle. Book excerpt: After briefly reviewing the problems caused by commodity price instability, the authors develop a mathematical model for commodity markets. The implications of this model for intervention and the welfare effects are then considered. A fully developed model of the world copper market is usedto investigate alternative buffer stock intervention rules in order to assess the scope and limitations of such stabilization strategies.

Author : Robert B. Campbell
Publisher :
ISBN 13 :
Total Pages : 52 pages
Book Rating : 4.10/5 ( download)

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Download or read book An Analysis of the Stabilizing and Welfare Effects of Intervention in Spot and Futures Markets written by Robert B. Campbell and published by . This book was released on 1985 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the effects of three alternative rules on the long-run distributions of both the spot and futures prices ina single commodity market, in which the key behavioral relationships are derived from the optimizing behavior of producers and speculators.The rules considered include: (i) leaning against the wind in the spot market; (ii) utility maximizing speculative behavior by the stabilization authority in the futures market; (iii) leaning against the wind in the futures market. Since the underlying model is sufficiently complex to preclude analytical solutions, the analysis makes extensive use of simulation methods. As a general proposition we find that intervention in the futures market is not as effective in stabilizing either the spot price of the futures price as is intervention in the spot market. Indeed, Rule (iii), while stabilizing the futures price may actually destabilize the spot price. Furthermore, the analogous type of rule undertaken in the spot market will always stabilize the futures price to a greater degree than it does the spot price. The welfare implications of these rules are also discussed. Our analysis shows how these can generate rather different distributions of welfare gains, including the overall benefits

Author : David Atsé
Publisher :
ISBN 13 :
Total Pages : 160 pages
Book Rating : 4.10/5 ( download)

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Download or read book Commodity Futures Trading and International Market Stabilization written by David Atsé and published by . This book was released on 1986 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Abby Kim
Publisher :
ISBN 13 :
Total Pages : 68 pages
Book Rating : 4.71/5 ( download)

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Download or read book Does Futures Speculation Destabilize Commodity Markets? written by Abby Kim and published by . This book was released on 2016 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how speculative futures trading affects commodity markets in terms of price impacts, volatility, and market quality. Contrary to the popular belief that speculators are responsible for the recent commodity price fluctuation, my analysis finds no evidence that speculators destabilize the spot market. Instead, speculators contribute to lower volatility and enhanced market quality. More importantly, the empirical results provide strong evidence that speculators either have no effect or dampen prices during periods of large price movement. My findings suggest speculators have had a significant, and in fact positive, influence on the commodity market during the recent "financialization" period, implying that restricting speculative trading in the futures market is not an efficient way to stabilize the commodity market.

Author : L. Dee Belveal
Publisher : McGraw-Hill Professional Publishing
ISBN 13 :
Total Pages : 416 pages
Book Rating : 4.25/5 ( download)

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Download or read book Speculation in Commodity Contracts and Options written by L. Dee Belveal and published by McGraw-Hill Professional Publishing. This book was released on 1985 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Paul Hallwood
Publisher : JAI Press
ISBN 13 :
Total Pages : 258 pages
Book Rating : 4.40/5 ( download)

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Download or read book Stabilization of International Commodity Markets written by Paul Hallwood and published by JAI Press. This book was released on 1979 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Francis Gerard Adams
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.16/5 ( download)

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Download or read book Stabilizing World Commodity Markets written by Francis Gerard Adams and published by . This book was released on 1978 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Robert Arthur Richardson
Publisher :
ISBN 13 :
Total Pages : 204 pages
Book Rating : 4.56/5 ( download)

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Download or read book Farm Commodity Price Stabilization Through Use of Futures Markets written by Robert Arthur Richardson and published by . This book was released on 1971 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this study was to analyze a proposal to stabilize spot commodity prices through government operations in the futures market. The proposal was advanced by H. S. Houthakker, who held that stocks of agricultural commodities should be stored by private firms because they derive greater convenience yield from the stocks than the government. Hance, he implies that it would be socially desirable for the stocks to be carried by private firms. Private traders, however, fail to carry sufficient stocks over long periods (6-9 months) because of uncertainty about future prices. Therefore, the government should prevent unduly wide price movements, but allow prices to fluctuate from day to day also to change over time in response to basic development in production and consuption. To operate the proposal, a government agency should be created to buy and sell futures contracts. The agency would attempt to stabilize prices around a three year moving average of spot prices. When spot prices fall below a certain level, say 85% of the three year moving average, the agency would buy futures contracts 6-9 months from maturity. Private traders would then sell futures contracts (hedge) and accumulate stocks. Spot supplies would fall and spot prices rise. When spot prices exced a certain level, say 115% of the three year moving average, the agency would sell futures contracts. Private traders would then close hedges and reduce inventory levels. The resultant increase in spot supplies would reduce prices. (...).

Author : Matthias Kalkuhl
Publisher : Springer
ISBN 13 : 3319282018
Total Pages : 620 pages
Book Rating : 4.15/5 ( download)

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Download or read book Food Price Volatility and Its Implications for Food Security and Policy written by Matthias Kalkuhl and published by Springer. This book was released on 2016-04-12 with total page 620 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides fresh insights into concepts, methods and new research findings on the causes of excessive food price volatility. It also discusses the implications for food security and policy responses to mitigate excessive volatility. The approaches applied by the contributors range from on-the-ground surveys, to panel econometrics and innovative high-frequency time series analysis as well as computational economics methods. It offers policy analysts and decision-makers guidance on dealing with extreme volatility.

Author : Craig Pirrong
Publisher : Cambridge University Press
ISBN 13 : 1139501976
Total Pages : 238 pages
Book Rating : 4.72/5 ( download)

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Download or read book Commodity Price Dynamics written by Craig Pirrong and published by Cambridge University Press. This book was released on 2011-10-31 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commodities have become an important component of many investors' portfolios and the focus of much political controversy over the past decade. This book utilizes structural models to provide a better understanding of how commodities' prices behave and what drives them. It exploits differences across commodities and examines a variety of predictions of the models to identify where they work and where they fail. The findings of the analysis are useful to scholars, traders and policy makers who want to better understand often puzzling - and extreme - movements in the prices of commodities from aluminium to oil to soybeans to zinc.