Potential demand for hedging by Australian wheat producers

Simmons, P and Rambaldi, A (1997) Potential demand for hedging by Australian wheat producers. Australian Journal of Agricultural And Resource Economics, 41 2: 157-168.

Author Simmons, P
Rambaldi, A
Title Potential demand for hedging by Australian wheat producers
Journal name Australian Journal of Agricultural And Resource Economics   Check publisher's open access policy
ISSN 1364-985X
Publication date 1997-01-01
Year available 1997
Sub-type Article (original research)
Volume 41
Issue 2
Start page 157
End page 168
Total pages 12
Publisher BLACKWELL PUBL LTD
Language eng
Abstract The potential for hedging Australian wheat with the new Sydney Futures Exchange wheat contract is examined using a theoretical hedging model parametised from previous studies. The optimal hedging ratio for an 'average' wheat farmer was found to be zero under reasonable assumptions about transaction costs and based on previously published measures of risk aversion. The estimated optimal hedging ratios were found by simulation to be quite sensitive to assumptions about the degree of risk aversion. If farmers are significantly more risk averse than is currently believed, then there is likely to be an active interest in the new futures market.
Keyword Agricultural Economics & Policy
Economics
Supply Response
Risk
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
 
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 7 times in Thomson Reuters Web of Science Article | Citations
Google Scholar Search Google Scholar
Created: Tue, 14 Aug 2007, 03:00:16 EST