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Factores críticos para la cobertura de riesgos en transacciones bursátiles de productos agroalimentarios

by Arias Segura, J; Brorsen, B.W; Harry, A; IICA, San José (Costa Rica). Area de Políticas y Comercio .
Material type: materialTypeLabelBookCall number: IICA-SPCDT No.2000-01 Series: Serie de Políticas y Comercio. Documentos Técnicos (IICA) no. 2000-01. Publisher: San José (Costa Rica): IICA, 2000Description: 45 p.ISBN: 92-9039-473 0.ISSN: 1607-1972.Other title: Optimal hedging under nonlinear borrowing cost, progressive tax rates, and liquidity constraints.Summary: Empirical research using optimal hedge ratios usually suggests that producers should hedge much more than they do. In this study, a new theoretical model od hedging is derived. Optimal hedge and leverage ratios and their relationship wiht yield risk, price variability, basis risk, taxes and financial risk are determined using alternative assumptions. The motivation to hedge is provided by progressive tax rates and cost of bankruptcy. An empirical example for a wheat and stocker-steer producer is provided. Results show that there are many factors, often assumed away in the literature, that make farmers hedge little or none. Progressive tax rates provide an incentive for farmers to hedge in order to reduce their tax liabilities and increase their after-tax income. Farmers will hedge when the cost of hedging is less than the benefits of hedging which come from reducing tax liabilities, allowed, hedging decreases as the amount of tax loss carried back is increases. Higher profitability makes benefits from futures trading negligible and hedging unattractive, since farmers move to higher income brackets with near also reduce the incentive to hedgeSubject(s): TRIGO | GANADO DE CARNE | JUNTAS DE COMERCIALIZACION | RIESGO | MERCADOS AL FUTURO | | | | | BLE | BOVIN DE BOUCHERIE | OFFICE DE COMMERCIALISATION | RISQUE
Item type Location Collection Call number Status Date due Barcode
Serie Serie Colección IICA IICA-SPCDT No.2000-01 (Browse shelf) Available BVE2730800000

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