The Financialization of Commodity Markets

Ing-Haw Cheng and Wei Xiong

No 19642, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The large inflow of investment capital to commodity futures markets in the last decade has generated a heated debate about whether financialization distorts commodity prices. Rather than focusing on the opposing views concerning whether investment flows either did or did not cause a price bubble, we critically review academic studies through the perspective of how financial investors affect risk sharing and information discovery in commodity markets. We argue that financialization has substantially changed commodity markets through these mechanisms.

JEL-codes: G00 Q02 Q1 Q4 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-opm
Note: AP EEE IFM ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

Published as Financialization of Commodity Markets Annual Review of Financial Economics Vol. 6: 419-441 (Volume publication date December 2014) First published online as a Review in Advance on October 09, 2014 DOI: 10.1146/annurev-financial-110613-034432 Ing-Haw Cheng and Wei Xiong

Downloads: (external link)
http://www.nber.org/papers/w19642.pdf (application/pdf)

Related works:
Journal Article: Financialization of Commodity Markets (2014)
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:nbr:nberwo:19642

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19642

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().