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Combining price forecasting with hedging of hogs: An evaluation using alternative measures of risk

✍ Scribed by Matthew T. Holt; Jon A. Brandt


Publisher
John Wiley and Sons
Year
1985
Tongue
English
Weight
820 KB
Volume
5
Category
Article
ISSN
0270-7314

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✦ Synopsis


I decade has exposed producers and processors to potentially large losses. Even though the agricultural environment has become more risky, livestock and crop produeers have shown great reluctance to use the futures market, in spite of substantial empirical evidence which suggests that price risk can be reduced through routine and selective hedging (e.g., Campbell, 1979; Holland, Purcell, and Hague, Journal Paper No. 9978 of' the Furdue University Agricultural Experiment Stahon. The authors hish to thank Wade Brorsen, Lee Schrader, and J. William Uhrig for wmmeuts on an earlier draft of t l u s article. This analpis was conducted while the senior author was a Graduale Research Ass~siant ak Purtltw Uiriwr4t,.