Abstract
Using a threshold-error-correction model for non-ferrous metals spot-futures prices the study reports evidence that equilibrium adjustment is quicker when the futures price exceeds the spot price. This supports the view that the commodities consumption value leads investors to retain the asset even when overpriced.
| Original language | English |
|---|---|
| Pages (from-to) | 5-8 |
| Journal | Applied Financial Economics Letters |
| Volume | 1 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2005 |