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Do Futures Benefit Farmers Who Adopt Them?

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  • Lence, Sergio H.

Abstract

Simulations are used to quantify the effects of making a futures market available on adopting farmer's behavior and welfare, and on market variables (e.g., spot prices). Explicitly modeled are aggregate market effects associated with futures' adoption by many farmers, and relevant constraints (e.g., credit restrictions) often faced by commodity producers.

Suggested Citation

  • Lence, Sergio H., 2002. "Do Futures Benefit Farmers Who Adopt Them?," 2002 Annual meeting, July 28-31, Long Beach, CA 19768, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19768
    DOI: 10.22004/ag.econ.19768
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    References listed on IDEAS

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    More about this item

    Keywords

    Marketing;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing

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