TY  - UNPD
A1  - Branger, Nicole
A1  - Grüning, Patrick
A1  - Schlag, Christian
T1  - Commodities, financialization, and heterogeneous agents
T2  - SAFE working paper series ; No. 131
N2  - The term 'financialization' describes the phenomenon that commodity contracts are traded for purely financial reasons and not for motives rooted in the real economy. Recently, financialization has been made responsible for causing adverse welfare effects especially for low-income and low-wealth agents, who have to spend a large share of their income for commodity consumption and cannot participate in financial markets. In this paper we study the effect of financial speculation on commodity prices in a heterogeneous agent production economy with an agricultural and an industrial producer, a financial speculator, and a commodity consumer. While access to financial markets is always beneficial for the participating agents, since it allows them to reduce their consumption volatility, it has a decisive effect with respect to overall welfare effects who can trade with whom (but not so much what types of instruments can be traded).
T3  - SAFE working paper - 131 
KW  - Commodities
KW  - General Equilibrium
KW  - Heterogeneous Preferences
KW  - Financial Markets
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/40063
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-400631
UR  - http://ssrn.com/abstract=2759314
PB  - SAFE
CY  - Frankfurt am Main
ER  -