Cao, Xiaofeng; Okhrin, Ostap; Odening, Martin; Ritter, … - Sonderforschungsbereich 649: Ökonomisches Risiko, … - 2014
Forecasting temperature in time and space is an important precondition for both the design of weather derivatives and … the assessment of the hedging effectiveness of index based weather insur-ance. In this article, we show how this task can …, we show how geographic basis risk inherent to weather derivatives can be mitigated by regional diversification. …