Affiliation:
1. Department of Agricultural and Applied Economics Virginia Polytechnic Institute and State University Blacksburg VA USA
2. Department of Agricultural and Applied Economics University of Georgia Athens GA USA
3. Department of Agricultural and Consumer Economics University of Illinois Urbana Champaign IL USA
Abstract
AbstractThe purpose of this paper is to comprehensively review the literature on the value and impact of the US Department of Agriculture (USDA) reports and discuss theoretical issues and empirical evidence. Only a handful of studies provide direct estimates of the welfare benefits of USDA information using a rational expectations framework in storable commodity markets. Most studies examine partial evidence of welfare benefits associated with market response to USDA information. These studies include examinations of the impacts of USDA report releases on cash and futures price volatility and other market dynamics, impacts of report releases on options implied volatility, impacts of unanticipated information in USDA reports, as well as informational value, returns, and survey‐based studies. We discuss the methodological and empirical contributions of these studies as well as their shortcomings and potential opportunities for future work.
Subject
Economics and Econometrics,Development
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