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| Barnaby has done a lot of work on this issue. In Sangamon county and other ECIL counties the price/yield is negative .7. While not perfect, scaling price instruments will perform some substitute for yield tools. That is why the revenue products in ECIL have some differnet relationships.
In other areas that are not highly correlated, the premiums tend to go higher.
When IP was first introduced, it was much cheaper than APH for this yield price relationship. Since then the rating has reduced the distortion between APH and revenue. Also IP was such a small player that no one was watching the changes.
What is opinion about yield price relationships in ECIL?
Forgottonian | |
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On the Road Again, (and GRIP no HO)
