Effects of Alternative Marketing Arrangements on the Spot Market Price Distribution in the U.S. Hog Market Jong-Jin Kim and Xiaoyong Zheng Abbreviated title: Effects of AMAs on Spot Price Distribution

نویسندگان

  • Jong-Jin Kim
  • Xiaoyong Zheng
چکیده

We propose a model that elucidates the two channels through which alternative marketing arrangements affect spot price in livestock markets. The direct effect works through their effect on demand and supply. The indirect effect works through spot price volatility, which has been ignored in the literature. We then estimate a dynamic model with data from the U.S. hog market to test our model implications and quantify the two effects. We find increases in the use of AMAs increase spot price volatility and decrease spot price level. The short-run effects are small but the long-run effects are nontrivial.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Do Alternative Marketing Arrangements Increase Pork Packers’ Market Power?

In this article we use structural econometrics to formally test whether the use of the alternative marketing arrangements (AMAs) by pork packers is the source of their market power on the spot (cash) market for live hogs. We specify the pork packers’ conjectures of the change in the industry total market procurement of live hogs through the spot market with respect to their AMAs stocks. The tes...

متن کامل

Investigating the Sustainability of Asian, European and American Regional Gas Markets in Response to Currency and Crude Oil Price Shocks

In this study, we model the long-term and dynamic relationships between spot oil and exchange rates  and gas prices by applying the Markov switching vector self-regression model in three regional gas markets in USA, Europe and Asia. Price behavior is analyzed using Bayesian estimation to take into account the transition from an existing relationship and the delayed and recurring effects of pric...

متن کامل

رویکرد تحلیلی در تعیین میزان بهینه ی قراردادهای پیش فروش

Due to volatility of spot power prices and in order to manage risk of a Generating Company (GenCo), this paper addresses determination of optimal quantity of bilateral forward contracts which can be formulated as an optimization problem. In this framework, in addition to selling electricity to spot market, bilateral forward contracts can be traded between Gencos and customers. Finding an optima...

متن کامل

Pricing of Futures Contracts by Considering Stochastic Exponential Jump Domain of Spot Price

Derivatives are alternative financial instruments which extend traders opportunities to achieve some financial goals. They are risk management instruments that are related to a data in the future, and also they react to uncertain prices. Study on pricing futures can provide useful tools to understand the stochastic behavior of prices to manage the risk of price volatility. Thus, this study eval...

متن کامل

Analyzing Capacity Withholding in Oligopoly Electricity Markets Considering Forward Contracts and Demand Elasticity

In this paper capacity withholding in an oligopolistic electricity market that all Generation Companies (GenCos) bid in a Cournot model is analyzed and the capacity withheld index, the capacity distortion index and the price distortion index are obtained and formulated. Then a new index, Distortion-Withheld Index (DWI), is proposed in order to measure the potential ability of market for capacit...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2015