But once home prices stopped rising, endogenous convenience yields plummeted so that they now reflect only the much lower long-run usage benefits of homeownership.
Housing Price Variation and the Convenience Yield to Owning a Home" by Jason Thomas and Robert Savickas.
Convenience yields as call options: An empirical analysis.
This convenience yield reflects the flexibility created by holding inventory.
You might object, "How could convenience yields or liquidity premia be that large?
In sum, these observations suggest to me that trading generated a "convenience yield" for Palm shares, just as physical trading generates a convenience yield for money.
Convenience yields on the crop is related to the return, and is assumed stochastic in our model, but is a bounded variation process.
In a relatively recent paper, Miltersen and Schwartz (1998) develop a fairly general model to value options on commodity futures in the presence of stochastic interest rates as well as stochastic convenience yields.
Figure 4 also shows the corresponding optimal shadow spot prices computed using Equation (17) and implied by the combinations of optimal spot prices and convenience yields
obtained from the two-factor model.
8 delivers the most convenient virus protection available and increased convenience yields
increased protection," said Jan Sutton, DATAWATCH Product Manager.
With continuous production, inventories are held to maintain the flow of crude from producing fields to refineries.
Figure 2 shows the time series (monthly data) for implied convenience yields
estimated in this fashion for a moving window from January 1991 to December 1993.