Artikel
Price Risk and Risk Management in Agriculture
This note studies the risk-management decisions of a risk-averse farmer. The farmer faces multiple sources of price uncertainty. He sells commodities to two markets at two prices, but only one of these markets has a futures market. We show that the farmer's optimal commodity futures market position, i.e., a cross-hedge strategy, is actually an over-hedge, a full-hedge, or an under-hedge strategy, depending on whether the two prices are strongly positively correlated, uncorrelated, or negatively correlated, respectively.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Contemporary Economics ; ISSN: 2084-0845 ; Volume: 7 ; Year: 2013 ; Issue: 2 ; Pages: 17-20 ; Warsaw: Vizja Press & IT
- Klassifikation
-
Wirtschaft
Bureaucracy; Administrative Processes in Public Organizations; Corruption
Positive Analysis of Policy Formulation and Implementation
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
- Thema
-
agricultural price risk
risk management
commodity futures
correlation
cross-hedge
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Broll, Udo
Welzel, Peter
Wong, Kit Pong
- Ereignis
-
Veröffentlichung
- (wer)
-
Vizja Press & IT
- (wo)
-
Warsaw
- (wann)
-
2013
- DOI
-
doi:10.5709/ce.1897-9254.79
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Broll, Udo
- Welzel, Peter
- Wong, Kit Pong
- Vizja Press & IT
Entstanden
- 2013
Ähnliche Objekte (12)
Consumption, inflation risk and dynamic hedging
Banking Firm, Equity and Value at Risk
Value at risk, bank equity and credit risk
Operational Risk, Translation, and Globalization
Market risk: Exponential weighting in the value-at-risk calculation
Risk Management in the Agri-food Sector
Bankmanagement mit Value at Risk
Characteristics and categories of risk in the small enterprises
Dynamic Hedging of Real Wealth Risk
Export Decision and Risk Sharing Markets
International investments and exchange rate risk
Value at risk, Equity and Diversification
Consumption, inflation risk and dynamic hedging
Banking Firm, Equity and Value at Risk
Value at risk, bank equity and credit risk
Operational Risk, Translation, and Globalization
Market risk: Exponential weighting in the value-at-risk calculation
Risk Management in the Agri-food Sector
Bankmanagement mit Value at Risk
Characteristics and categories of risk in the small enterprises
Dynamic Hedging of Real Wealth Risk
Export Decision and Risk Sharing Markets
International investments and exchange rate risk
Value at risk, Equity and Diversification
Consumption, inflation risk and dynamic hedging
Banking Firm, Equity and Value at Risk
Value at risk, bank equity and credit risk
Operational Risk, Translation, and Globalization
Market risk: Exponential weighting in the value-at-risk calculation
Risk Management in the Agri-food Sector
Bankmanagement mit Value at Risk
Characteristics and categories of risk in the small enterprises
Dynamic Hedging of Real Wealth Risk
Export Decision and Risk Sharing Markets
International investments and exchange rate risk