Why Haven't Weather Derivatives Been More Successful as Futures Contracts? A Case Study

  title={Why Haven't Weather Derivatives Been More Successful as Futures Contracts? A Case Study},
  author={H. Till},
  journal={Econometric Modeling: Derivatives eJournal},
  • H. Till
  • Published 2014
  • Business
  • Econometric Modeling: Derivatives eJournal
Why have some seemingly promising futures contracts not succeeded in the recent past? In this paper, we will examine one such example, the weather derivatives market. In two companion working papers, we will also analyze two other futures market failures: namely, in the pulp market and in the uranium market.The structure of this paper is as follows. First we provide a brief history of weather derivatives contracts as well as a description of these contracts. Next we review customized over-the… Expand
5 Citations


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