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Modeling stumpage markets using vector error correction vs. simultaneous equation estimation approach: A case of the Louisiana sawtimber market

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  • Parajuli, Rajan
  • Zhang, Daowei
  • Chang, Sun Joseph

Abstract

In this paper, we compare the estimation results obtained from the multivariate vector error correction (VEC) method with the traditional simultaneous equations estimation approach. We found that the traditional simultaneous equations estimation approach produces similar demand and supply coefficients in the Louisiana stumpage market as the VEC method.

Suggested Citation

  • Parajuli, Rajan & Zhang, Daowei & Chang, Sun Joseph, 2016. "Modeling stumpage markets using vector error correction vs. simultaneous equation estimation approach: A case of the Louisiana sawtimber market," Forest Policy and Economics, Elsevier, vol. 70(C), pages 16-19.
    • Handle: RePEc:eee:forpol:v:70:y:2016:i:c:p:16-19
    DOI: 10.1016/j.forpol.2016.05.013
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    References listed on IDEAS

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    Cited by:

    1. Zhai, Jun & Kuusela, Olli-Pekka, 2023. "An econometric study of Oregon's log and lumber markets: Estimation of price elasticities using two approaches," Forest Policy and Economics, Elsevier, vol. 149(C).
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    3. Borzykowski, Nicolas, 2019. "A supply-demand modeling of the Swiss roundwood market: Actors responsiveness and CO2 implications," Forest Policy and Economics, Elsevier, vol. 102(C), pages 100-113.
    4. Borzykowski, Nicolas, 2017. "The Swiss market for construction wood : estimating elasticities with time series simultaneous equations," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258659, Agricultural Economics Society.

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