Welfare Gains from Market Insurance : The Case of Mexican Oil Price Risk /
Over the past two decades, Mexico has hedged oil price risk through the purchase of put options. We examine the resulting welfare gains using a standard sovereign default model calibrated to Mexican data. We show that hedging increases welfare by reducing income volatility and reducing risk spreads...
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| Formato: | Revista |
| Idioma: | English |
| Publicado: |
Washington, D.C. :
International Monetary Fund,
2018.
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| Series: | IMF Working Papers; Working Paper ;
No. 2018/035 |
| Acceso en liña: | Full text available on IMF |