Measuring the Benefits from Futures Markets: Conceptual Issues
This paper illustrates that the usual consumer surplus approach to evaluation of the benefits of a futures market fails because of certain unobserved benefits. In particular, when futures markets provide benefits in the form of a reduced variability of future spot prices, the usual consumer surplus approach will systematically understate the benefits of futures markets.
Volume (Year): 1 (2002)
Issue (Month): 1 (April)
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