The Theory of Commodity Price Stabilization

The Theory of Commodity Price Stabilization
Author: David M. G. Newbery
Publisher: Oxford University Press, USA
Total Pages: 486
Release: 1981
Genre: Business & Economics
ISBN:

Fundamentals: supply and demand under risk; Market equilibrium; Price stabilization with no supply response; Supply responses to stabilization; Microeconomic repercussions; Economic considerations.

An Analysis of the Stabilizing and Welfare Effects of Intervention in Spot and Futures Markets

An Analysis of the Stabilizing and Welfare Effects of Intervention in Spot and Futures Markets
Author: Robert B. Campbell
Publisher:
Total Pages: 52
Release: 1985
Genre: Commodity exchanges
ISBN:

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

The Economics of Food Price Volatility

The Economics of Food Price Volatility
Author: Jean-Paul Chavas
Publisher: University of Chicago Press
Total Pages: 394
Release: 2014-10-14
Genre: Business & Economics
ISBN: 022612892X

"The conference was organized by the three editors of this book and took place on August 15-16, 2012 in Seattle."--Preface.

Stabilizing Speculative Commodity Markets

Stabilizing Speculative Commodity Markets
Author: S. Ghosh
Publisher: Oxford University Press, USA
Total Pages: 464
Release: 1987
Genre: Business & Economics
ISBN:

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.

Commodity Price Dynamics

Commodity Price Dynamics
Author: Craig Pirrong
Publisher: Cambridge University Press
Total Pages: 239
Release: 2011-10-31
Genre: Business & Economics
ISBN: 1139501976

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.

Storage and Commodity Markets

Storage and Commodity Markets
Author: Jeffrey C. Williams
Publisher: Cambridge University Press
Total Pages: 522
Release: 1991-03-29
Genre: Business & Economics
ISBN: 0521326168

This book deals with the capability to store surplus commodities and the impact of stockpiles on prices and production.

Commodity, Futures and Financial Markets

Commodity, Futures and Financial Markets
Author: L. Phlips
Publisher: Springer Science & Business Media
Total Pages: 314
Release: 2012-12-06
Genre: Business & Economics
ISBN: 9401133549

Louis Phlips The stabilisation of primary commodity prices, and the related issue of the stabilisation of export earnings of developing countries, have traditionally been studied without reference to the futures markets (that exist or could exist) for these commodities. These futures markets have in turn been s~udied in isolation. The same is true for the new developments on financial markets. Over the last few years, in particular sine the 1985 tin crisis and the October 1987 stock exchange crisis, it has become evident that there are inter actions between commodity, futures, and financial markets and that these inter actions are very important. The more so as trade on futures and financial markets has shown a spectacular increase. This volume brings together a number of recent and unpublished papers on these interactions by leading specialists (and their students). A first set of papers examines how the use of futures markets could help stabilising export earnings of developing countries and how this compares to the rather unsuccessful UNCTAD type interventions via buffer stocks, pegged prices and cartels. A second set of papers faces the fact, largely ignored in the literature, that commodity prices are determined in foreign currencies, with the result that developing countries suffer from the volatility of exchange rates of these currencies (even in cases where commodity prices are relatively stable). Financial markets are thus explicitly linked to futures and commodity markets.