DevLab Seminar with Martin Rotemburg (NYU)

Hosted by DevLab at NYU Abu Dhabi

Date: Wednesday, March 2, 2022

Time: 8:45 AM-9:45 AM Eastern Time

Speaker:

• Martin Rotemburg (NYU) presents Futures Markets and Spot Prices

Abstract:

How do futures markets affect prices? We study an important historical event in order to shed light on this question: in 1865, the Chicago Board of Trade set up formal futures markets for some but not all commodities. We digitize weekly information on spot prices and storage for both affected and unaffected crops. Futures markets lead both prices and storage to fall in the short run, but prices recover within a year. We describe a model of forward looking buyers and sellers with access to storage that can fit this pattern.

RSVP:

The seminar is for researchers and academics interested in Development topics. If you are interested in joining the seminar, please email us at devlab@nyu.edu.