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Export/Import risks at alternative stages of U.S. grain export trade

✍ Scribed by Robert J. Hauser; David Neff


Publisher
John Wiley and Sons
Year
1993
Tongue
English
Weight
826 KB
Volume
13
Category
Article
ISSN
0270-7314

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✦ Synopsis


CCC 0270-7314/93/060579-17 'A reviewer correctly noted that, because of the higher price levels for soybeans versus corn, percentage deviations may be a more appropriate measure. This is true but other considerations such as the distribution of the deviations (e.g., normal versus lognormal) and the focus of study are important. This study is concerned with a short-hedge transportation situation. The handling and transportation costs for soybeans are usually the same as those for corn and thus risk caused by spatial differences are based on similar cost levels. Moreover, based on past experiences with these types of measures, the use of percentage deviations would have little impact on the qualitative results and conclusions.