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The Consumer'S Use Of Futures

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  • Berck, Peter
  • Cecchetti, Stephen G.

Abstract

This paper shows that futures should be included in an efficient portfolio and that the degree of their inclusion depends critically on the evaluation of income in real terms. As planned consumption is balanced toward items traded in the futures market, holdings of futures are shown to increase.

Suggested Citation

  • Berck, Peter & Cecchetti, Stephen G., 1980. "The Consumer'S Use Of Futures," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278903, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea80:278903
    DOI: 10.22004/ag.econ.278903
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    References listed on IDEAS

    as
    1. Rubinstein, Mark E, 1973. "A Mean-Variance Synthesis of Corporate Financial Theory," Journal of Finance, American Finance Association, vol. 28(1), pages 167-181, March.
    2. Grauer, Frederick L A & Litzenberger, Robert H, 1979. "The Pricing of Commodity Futures Contracts, Nominal Bonds and Other Risky Assets under Commodity Price Uncertainty," Journal of Finance, American Finance Association, vol. 34(1), pages 69-83, March.
    3. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
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    Keywords

    Consumer/Household Economics;

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