Investigation of Price Discovery and Efficiency for Cash and Futures Cotton Prices

@inproceedings{Brorsen1984InvestigationOP,
  title={Investigation of Price Discovery and Efficiency for Cash and Futures Cotton Prices},
  author={B. Wade Brorsen and Denise Bailey and James W. Richardson},
  year={1984}
}
The role of the futures market in price discovery and its impact on efficiency have been the subject of much research and controversy. Martin and Garcia concluded in their study that futures markets are not agencies for rational price formation. However, Just and Rausser presented evidence that the futures price is a good estimator of the cash price in a future time period. Grossman and Stiglitz showed the existence of an inefficient cash market is necessary for a successful futures market… CONTINUE READING

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