The Variability in Intertemporal Price Relationships for a Storable Commodity

Emmett W. Elam

No 278935, 1984 Annual Meeting, August 5-8, Ithaca, New York from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Holbrook Working believed that expectations should have no influence on intertemporal price spreads. This paper shows that Working's conclusion is not always correct. Indeed, it is shown that the effect of changing expectations on intertemporal price relationships depends upon the slope of the supply of storage function. As the slope increases, variability in the intertemporal price spread increases. Empirical results using the May/July wheat spread verified these conclusions.

Keywords: Agricultural Finance; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 23
Date: 1984-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea84:278935

DOI: 10.22004/ag.econ.278935

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