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Testing For Risk Premiums In The Wheat-Flour Subsector

Author

Listed:
  • Cotterill, Ronald W.
  • Salih, Hachim M.

Abstract

This paper specifies a model of wholesale flour price determination that incorporates risk measures for input prices (wheat) and a joint output price (millfeed). Tests using daily price data for a Buffalo flour miller indicate that risk premiums do exist. Moreover, these premiums persist in a model that incorporates hedging.

Suggested Citation

  • Cotterill, Ronald W. & Salih, Hachim M., 1992. "Testing For Risk Premiums In The Wheat-Flour Subsector," Working Papers 116109, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    • Handle: RePEc:ags:rpspwp:116109
    DOI: 10.22004/ag.econ.116109
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    File URL: https://ageconsearch.umn.edu/record/116109/files/WP-31.pdf
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    References listed on IDEAS

    as
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    6. Steahr, Thomas E. & McMullin, Pamela, 1991. "An Interdisciplinary Framework For The Analysis Of Foodborne Disease," Working Papers 116100, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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    11. McLaughlin, Edward W. & Rao, Vithala R., 1988. "The Strategic Role of Supermarket Buyer Intermediaries in New Product Selection: Implications for Systemwide Efficiency," Working Papers 115905, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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    17. Williams, Richard A. & Brown, Robert N., 1991. "Health And Safety Regulation Of Small, High-Risk Subpopulations," Working Papers 115914, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    18. Lopez, Rigoberto A., 1988. "Political Economy of the United States Sugar Policies," Working Papers 115808, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    19. Julie A. Caswell & Ronald W. Cotterill, 1988. "Two new theoretical approaches to measuring industry and firm performance," Agribusiness, John Wiley & Sons, Ltd., vol. 4(6), pages 511-520.
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    23. Cotterill, Ronald W. & Haller, Lawrence E., 1988. "Entry Barriers, The Queue Of Potential Entrants, And Entry Into Food Retailing Markets," Working Papers 115903, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    24. Hopkins, Yvette S. & Connor, John M., 1992. "A Re-Examination Of Event Studies Applied To Challenged Horizontal Mergers," Working Papers 116105, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    25. Zellner, James A., 1987. "Some Causes And Consequences Of Food Industry Conduct: A Simultaneous Analysis," Working Papers 115805, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
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    Cited by:

    1. Langan, Glenn E. & Cotterill, Ronald W., 1994. "Estimating Brand Level Demand Elasticities and Measuring Market Power for Regular Carbonated Soft Drinks," Working Papers 116168, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    2. Caswell, Julie A. & Kleinschmit, Jaana K., 1993. "Economic Criteria for Settling Federalism Disputes with an Application to Food Safety Regulation," Working Papers 116114, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    3. Wen, Hong & Haller, Lawrence E., 1994. "Price Determination in the Bottled Water Industry: A Case Study of Poland Spring," Working Papers 116165, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    4. Bhuyan, Sanjib & Cotterill, Ronald W., 1994. "Countervailing Power and Seller Performance in U.S. Food and Tobacco Manufacturing Industries," Working Papers 116163, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.

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