Information and output in agricultural markets: the role of market transparency
Tóm tắt
This study is concerned with the impact of changes in market transparency on agricultural production levels. Market transparency is of central importance in the agri-food system as it affects the degree of uncertainty farmers face when taking economic decisions. In our study, we endogenize uncertainty by establishing a link between market transparency and the terms of contracting on the futures market. We find that a higher degree of market transparency leads to higher expected profits but does not increase agricultural production levels per se. However, when farmers have no access to futures markets, transparency does increase ex ante expected uility and output.
Tài liệu tham khảo
Allen DW, Lueck D: The nature of the farm: contracts, risk, and organization in agriculture. Cambridge, London: MIT Press; 2003.
Blackwell D: Equivalent comparison of experiments. Ann Math Stat 1953, 24: 265–272. 10.1214/aoms/1177729032
Broll U, Welzel P, Wong KP: Price risk and risk management in agriculture. Contemp Econ 2013, 7: 17–20.
Eckwert B, Zilcha I: The value of information in production economies. J Econ Theory 2001, 100: 172–186. 10.1006/jeth.2000.2756
Eckwert B, Zilcha I: Incomplete risk sharing arrangements and the value of information. Econ Theory 2003, 21: 43–58. 10.1007/s00199-002-0275-x
Frechette DL: The demand for hedging and the value of hedging opportunities. Am J Agric Econ 2000, 82: 897–907. 10.1111/0002-9092.00089
Hirshleifer J: The private and social value of information and the reward to incentive activity. Am Econ Rev 1971, 61: 561–574.
Hudson D: Agricultural markets and prices. and Oxford: Blackwell, Malden; 2007.
Kawai M, Zilcha I: International trade with forward futures markets under exchange rate and price uncertainty. J Int Econ 1986, 20: 83–98. 10.1016/0022-1996(86)90062-0
Kihlstrom RE: A Bayesian exposition of Blackwell’s theorem on the comparison of experiments. In Bayesian Models of Economic Theory. Edited by: Boyer M, Kihlstrom RE. North-Holland, Amsterdam: Elsevier; 1984:13–31.
Moschini G, Hennessy DA: Uncertainty, risk aversion, and risk management for agricultural producers. In Handbook of Agricultural Economics (Vol. 1a). Edited by: Gardner B, Rausser G. Amsterdam: Elsevier; 2001:88–153.
Newbery DMG, Stiglitz JE: The theory of commodity price stabilization. Oxford: Clarendon Press; 1981.
UNCTAD: Price formation in financialized commodity markets: The role of information. New York and Geneva; 2011.
Wong KP: Operational and financial hedging for exporting firms. Int Rev Econ Finance 2007, 16: 459–470. 10.1016/j.iref.2005.06.001