REFERENCE-DEPENDENT HEDGING: THEORY AND EVIDENCE FROM IOWA CORN PRODUCERS

Jacobs, KL; Li, ZR; Hayes, DJ

Li, ZR (reprint author), Southwestern Univ Finance & Econ, Sch Publ Finance & Taxat, Chengdu, Sichuan, Peoples R China.

AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS, 2018; 100 (5): 1450

Abstract

We develop a theoretical model of optimal hedging that nests expected utility and expected target utility theories. We use this model to characterize ......

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