Crop Yield Expectation Stochastic Process with Beta Distribution as Limit, A
利用波利亚罐模型构建了一个作物产量预期随机过程，该过程遵循鞅性质且极限分布为贝塔分布，可用于研究作物对冲决策和估值。
The modeling of price risk in the theory and practice of commodity risk management has been developed far beyond that of crop yield risk. This is in large part due to the use of plausible stochastic price processes. We use the Pólya urn to identify and develop a model of the crop yield expectation stochastic process over a growing season. The process allows a role for agronomic events, such as growing degree days. The model is internally consistent in adhering to the martingale property. The limiting distribution is the beta, commonly used in yield modeling. By applying binomial tree analysis, we show how to use the framework to study hedging decisions and crop valuation.