EconPapers    
Economics at your fingertips  
 

Index Funds, Financialization, and Commodity Futures Markets

Scott Irwin and Dwight R. Sanders

Applied Economic Perspectives and Policy, 2011, vol. 33, issue 1, 1-31

Abstract: Some market participants and policy-makers believe that index fund investment was a major driver of the 2007-2008 spike in commodity futures prices. One group of empirical studies does find evidence that commodity index investment had an impact on the level of futures prices. However, the data and methods used in these studies are subject to criticisms that limit the confidence one can place in their results. Moreover, another group of studies provides no systematic evidence of a relationship between positions of index funds and the level of commodity futures prices. The lack of a direct empirical link between index fund trading and commodity futures prices casts considerable doubt on the belief that index funds fueled a price bubble. Copyright 2011, Oxford University Press.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (82) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/aepp/ppq032 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Journal Article: Index Funds, Financialization, and Commodity Futures Markets (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:apecpp:v:33:y:2011:i:1:p:1-31

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Applied Economic Perspectives and Policy is currently edited by Timothy Park, Tomislav Vukina and Ian Sheldon

More articles in Applied Economic Perspectives and Policy from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2019-03-31
Handle: RePEc:oup:apecpp:v:33:y:2011:i:1:p:1-31