In usual pricing approaches for weather derivatives, forward-looking information such as meteorological weather forecasts is not considered. Thus, important knowledge used by market participants is ignored in theory. By extending a standard model for the daily temperature, this paper allows the...

SFB 649 Discussion Paper 2008-016 Estimating Investment Equations in Imperfect Capital Markets Silke Hüttel* Oliver Mußhoff* Martin Odening* Nataliya Zinych* * Humboldt-Universität zu Berlin, Germany This research was supported by the Deutsche...