A discrete-time stochastic partial equilibrium model of the spot freight market
Working paper

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Date
2004-03Metadata
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- Discussion papers (SAM) [640]
Abstract
This paper presents a stochastic extension of the classical partial equilibrium models
of the spot freight market. The supply in the model is based on microeconomic
analysis of the supply characteristics of a given fleet and orderbook, in this case the
VLCC fleet, and stochastic demolition and ordering behaviour. Combined with
stochastic demand, the model is used to simulate scenarios for the future VLCC spot freight rate.
Publisher
Norwegian School of Economics and Business Administration. Department of EconomicsSeries
Discussion paper2004:11