IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v69y1993i3p215-224.html
   My bibliography  Save this article

Do Forest Assets Hedge Inflation?

Author

Listed:
  • Courtland L. Washburn
  • Clark S. Binkley

Abstract

Forest assets are commonly viewed as good hedges against inflation. The view is based largely, however, on anecdotal evidence rather than empirical analysis. This paper examines the historical relationship between forestry returns and inflation. The results suggest that forests in the U.S. West and South have been superior hedges against higher-than-anticipated inflation; forests in the Northeast have been less effective inflation hedges. The results also indicate that western and southern forests have been overvalued during periods of relatively high expected inflation. Markets for forests in the Northeast, however, have been relatively efficient processors of inflation expectations.

Suggested Citation

  • Courtland L. Washburn & Clark S. Binkley, 1993. "Do Forest Assets Hedge Inflation?," Land Economics, University of Wisconsin Press, vol. 69(3), pages 215-224.
  • Handle: RePEc:uwp:landec:v:69:y:1993:i:3:p:215-224
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/pdfplus/3146588
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sun, Changyou, 2013. "On the market risk of securitized timberlands," Journal of Forest Economics, Elsevier, vol. 19(2), pages 110-127.
    2. Sadorsky, Perry & Henriques, Irene, 2001. "Multifactor risk and the stock returns of Canadian paper and forest products companies," Forest Policy and Economics, Elsevier, vol. 3(3-4), pages 199-208, November.
    3. Yao, Wenjing & Mei, Bin, 2015. "Assessing forestry-related assets with the intertemporal capital asset pricing model," Forest Policy and Economics, Elsevier, vol. 50(C), pages 192-199.
    4. La, Le & Mei, Bin, 2015. "Portfolio diversification through timber real estate investment trusts: A cointegration analysis," Forest Policy and Economics, Elsevier, vol. 50(C), pages 269-274.
    5. Hyytiainen, Kari & Penttinen, Markku, 2008. "Applying portfolio optimisation to the harvesting decisions of non-industrial private forest owners," Forest Policy and Economics, Elsevier, vol. 10(3), pages 151-160, January.
    6. Jette Bredahl Jacobsen & Frank Jensen & Bo Jellesmark Thorsen, 2015. "Forest value and optimal rotations in continuous cover forestry," IFRO Working Paper 2015/08, University of Copenhagen, Department of Food and Resource Economics.
    7. Wan, Yang & Clutter, Michael L. & Mei, Bin & Siry, Jacek P., 2015. "Assessing the role of U.S. timberland assets in a mixed portfolio under the mean-conditional value at risk framework," Forest Policy and Economics, Elsevier, vol. 50(C), pages 118-126.
    8. repec:eee:foreco:v:30:y:2018:i:c:p:52-57 is not listed on IDEAS
    9. Ian Keay, 2007. "Resource Rents and their Impact on Institutional and Economic Development," Working Papers 1143, Queen's University, Department of Economics.
    10. repec:eee:jebusi:v:91:y:2017:i:c:p:24-40 is not listed on IDEAS
    11. repec:kap:enreec:v:69:y:2018:i:4:d:10.1007_s10640-016-0098-z is not listed on IDEAS
    12. Parajuli, Rajan & Chang, Sun Joseph, 2015. "Real Assets and Inflation: Which Real Assets Hedge Inflation," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205283, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    13. Fulli-Lemaire, Nicolas, 2013. "Alternative inflation hedging strategies for ALM," MPRA Paper 43755, University Library of Munich, Germany.
    14. Fulli-Lemaire, Nicolas, 2012. "A Dynamic Inflation Hedging Trading Strategy Using a CPPI," MPRA Paper 42851, University Library of Munich, Germany, revised 13 Nov 2012.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:69:y:1993:i:3:p:215-224. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://le.uwpress.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.