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Timber Restrictions, Financial Crisis, and Price Transmission in North American Softwood Lumber Markets

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  • Changyou Sun
  • Zhuo Ning

Abstract

Competition among the South, the West, and Canada as major softwood lumber production regions has been affected by timber resource endowments, public land policies, and the general economy. To assess spatial price linkages, a threshold vector error correction model is applied on softwood lumber prices from 1978 to 2011. Price transmission is found to be nonlinear and asymmetric. The South is more adaptive to price disequilibrium. Short-term price adjustments are more sophisticated over the period of 1991 to 1993 related to the federal timber restrictions than over the period of 2008 to 2009 related to the global financial crisis.

Suggested Citation

  • Changyou Sun & Zhuo Ning, 2014. "Timber Restrictions, Financial Crisis, and Price Transmission in North American Softwood Lumber Markets," Land Economics, University of Wisconsin Press, vol. 90(2), pages 306-323.
    • Handle: RePEc:uwp:landec:v:90:y:2014:ii:1:p:306-323
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    Cited by:

    1. Jinggang Guo & Craig M.T. Johnston, 2020. "Do Protectionist Trade Policies Integrate Domestic Markets? Evidence from the Canada-U.S. Softwood Lumber Dispute," Staff Working Papers 20-10, Bank of Canada.
    2. Guo, Jinggang & Johnston, Craig M.T., 2021. "Do protectionist trade policies integrate domestic markets? Evidence from the Canada-U.S. softwood lumber dispute," Forest Policy and Economics, Elsevier, vol. 130(C).
    3. Kanieski da Silva, Bruno & Schons, Stella Z. & Cubbage, Frederick W. & Parajuli, Rajan, 2020. "Spatial and cross-product price linkages in the Brazilian pine timber markets," Forest Policy and Economics, Elsevier, vol. 117(C).
    4. Kanieski Da Silva, Bruno & Abt, Robert & Cubbage, Frederick W., 2018. "Pulpwood Market Dynamics: The Effects Of Wood Pellet Production," 2018 Annual Meeting, August 5-7, Washington, D.C. 273994, Agricultural and Applied Economics Association.

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    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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