Data/hora: 16/06/2024 19:32:37

Provedor de dados: 	31	
País: 	United States	
Título: 	Basis Risk and Weather Hedging Effectiveness	
Autores: 	Woodard,   Joshua D.; Garcia,   Philip.	
Data: 	2007-07-27	
Ano: 	2007	
Palavras-chave: 	Weather Derivatives; Basis Risk; Spatial Aggregation; Insurance; Hedging Effectiveness; Agricultural Finance; Marketing; Risk and Uncertainty.	
Resumo: 	Basis risk has been cited as a primary concern for implementing weather hedges. This study investigates several dimensions of weather basis risk for the U.S. corn market at various levels of aggregation. The results suggest that while the degree of geographic basis risk may be significant in some instances, it should not preclude the use of geographic cross-hedging. In addition, the degree to which geographic basis risk impedes effective hedging diminishes as the level of spatial aggregation increases. In fact, geographic basis risk is actually negative in the case most representative of a reinsurance hedge, and the reduction in risk from employing straightforward temperature derivatives is significant. Finally, precipitation hedges are found to introduce additional product basis risk. The findings may be of interest to decision makers considering using exchange traded weather derivatives to hedge agricultural production and insurance risk.	
Tipo: 	Conference Paper or Presentation	
Idioma: 	Inglês	
Identificador: 	26950

http://purl.umn.edu/9254	
Editor: 	AgEcon Search	
Relação: 	European Association of Agricultural Economists&gt;101st Seminar, July 5-6, 2007, Berlin Germany

Seminar Paper	
Formato: 	37

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