Time-varying risk premium: further evidence in agricultural futures markets

C-Tier
Journal: Applied Economics
Year: 2009
Volume: 41
Issue: 6
Pages: 715-725

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Research has provided mixed results regarding the presence of a time-varying risk premium in agricultural futures markets. In this article we test for the presence of a time-varying risk premium focusing on the properties of the underlying data. Our results show that accounting for the structural break in the 1970s plays a key role in the findings. In contrast to recent research, we find only limited evidence of time-varying risk premium. For a two-month horizon the corn, soybean meal and hog markets show no signs of a risk premium, while very weak support for a time-varying premium emerges in live cattle. For the four-month horizon, no evidence of a time-varying risk premium appears for any of the markets.

Technical Details

RePEc Handle
repec:taf:applec:v:41:y:2009:i:6:p:715-725
Journal Field
General
Author Count
2
Added to Database
2026-01-25