Spatial Competition, Arbitrage, and Risk in U.S. Soybeans

Spatial Competition, Arbitrage, and Risk in U.S. Soybeans

This paper analyzes spatial arbitrage and vertical integration of a U.S. soybean-trading firm. A risk-constrained optimization model using Monte Carlo simulation and copula joint distributions is specified. Results show that spatial-arbitrage payoffs vary regionally. Sensitivity results indicate tha...

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Bibliographic Details
Main Authors: Kristopher Skadberg, William W. Wilson, Ryan Larsen, Bruce Dahl
Format: Article
Language:English
Published: Western Agricultural Economics Association 2015-05-01
Series:Journal of Agricultural and Resource Economics
Subjects:
agricultural subsidies
crop insurance premiums
farmer welfare
risk management agency
Online Access:https://ageconsearch.umn.edu/record/210550
id doaj-23c6a9d1cae848ee96a4d9f1d86446af
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spelling doaj-23c6a9d1cae848ee96a4d9f1d86446af2020-11-25T02:42:33ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852015-05-0140344245610.22004/ag.econ.210550210550Spatial Competition, Arbitrage, and Risk in U.S. SoybeansKristopher SkadbergWilliam W. WilsonRyan LarsenBruce DahlThis paper analyzes spatial arbitrage and vertical integration of a U.S. soybean-trading firm. A risk-constrained optimization model using Monte Carlo simulation and copula joint distributions is specified. Results show that spatial-arbitrage payoffs vary regionally. Sensitivity results indicate that payoffs and risks increase as firms become more vertically integrated.https://ageconsearch.umn.edu/record/210550agricultural subsidiescrop insurance premiumsfarmer welfarerisk management agency
collection DOAJ
language English
format Article
sources DOAJ
author Kristopher Skadberg
William W. Wilson
Ryan Larsen
Bruce Dahl
spellingShingle Kristopher Skadberg
William W. Wilson
Ryan Larsen
Bruce Dahl
Spatial Competition, Arbitrage, and Risk in U.S. Soybeans
Journal of Agricultural and Resource Economics
agricultural subsidies
crop insurance premiums
farmer welfare
risk management agency
author_facet Kristopher Skadberg
William W. Wilson
Ryan Larsen
Bruce Dahl
author_sort Kristopher Skadberg
title Spatial Competition, Arbitrage, and Risk in U.S. Soybeans
title_short Spatial Competition, Arbitrage, and Risk in U.S. Soybeans
title_full Spatial Competition, Arbitrage, and Risk in U.S. Soybeans
title_fullStr Spatial Competition, Arbitrage, and Risk in U.S. Soybeans
title_full_unstemmed Spatial Competition, Arbitrage, and Risk in U.S. Soybeans
title_sort spatial competition, arbitrage, and risk in u.s. soybeans
publisher Western Agricultural Economics Association
series Journal of Agricultural and Resource Economics
issn 1068-5502
2327-8285
publishDate 2015-05-01
description This paper analyzes spatial arbitrage and vertical integration of a U.S. soybean-trading firm. A risk-constrained optimization model using Monte Carlo simulation and copula joint distributions is specified. Results show that spatial-arbitrage payoffs vary regionally. Sensitivity results indicate that payoffs and risks increase as firms become more vertically integrated.
topic agricultural subsidies
crop insurance premiums
farmer welfare
risk management agency
url https://ageconsearch.umn.edu/record/210550
work_keys_str_mv AT kristopherskadberg spatialcompetitionarbitrageandriskinussoybeans
AT williamwwilson spatialcompetitionarbitrageandriskinussoybeans
AT ryanlarsen spatialcompetitionarbitrageandriskinussoybeans
AT brucedahl spatialcompetitionarbitrageandriskinussoybeans
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