How Long Will Commodity Prices Remain High?

Thumbnail Image
Date
2013-05-01
Authors
Hayes, Dermot
Li, Lisha
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Person
Research Projects
Organizational Units
Journal Issue
Is Version Of
Versions
Series
Department
Center for Agricultural and Rural Development
Abstract

Participants in futures markets have money on the line and therefore have every incentive to collect and analyze as much information as possible. Academic evidence by Richard Just and Gordon Rausser at Berkeley suggests that futures-based price projections are more accurate than those created from econometric models. One problem with the use of futures contracts to project long-term prices is that there is low liquidity for contracts that trade more than three years into the future. Economists at Iowa State have developed a way to extrapolate futures prices for five or more years into the future.

Comments
Description
Keywords
Citation
DOI
Source
Copyright
Tue Jan 01 00:00:00 UTC 2013
Collections