Commodity markets

Objectives

This module focuses on the economic and environmental challenges of raw materials markets. As these products are essential inputs for the real economy, price trends have a direct and immediate impact on investment, production and food supplies. The aim is to study the price formation of these products derived from natural resources and the impact of the exhaustible nature of the resource, the factors explaining price volatility and the role of market financialization. The economic analysis of the oil market will be the subject of a specific course.

A specific analysis will focus on the current restructuring of world commodity markets as a result of the COVID-19 crisis, the war in Ukraine and the effects of climate change.

Course outline

Depletable natural resources, Hotelling model, volatility, partial equilibrium model, forecasts, futures markets

Prerequisites

Not indicated