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Stumpage Prices in Sweden 1909-2011: Testing for Non-Stationarity

Author

Listed:
  • Andersson, Linda

    (Department of Business, Economics, Statistics and Informatics)

  • Hultkrantz , Lars

    (Department of Business, Economics, Statistics and Informatics)

  • Mantalos , Panagiotis

    (Department of Business, Economics, Statistics and Informatics)

Abstract

The price of timber stumpage is one of the few natural-resource rents that can be directly observed as a market price. Rules for optimal timber harvesting under uncertainty have been found to depend on whether the timber rent price is non-stationary or stationary. In this study we extend previous research by Hultkrantz (1995) that tested for unit-root with an exogenous break point in Swedish stumpage prices from 1909-1990, employing data up to 2011, hence for 103 years, and unit-root tests with an endogenously selected break point. We find support for a structural level break at the end of WW2 and that non-stationarity can be rejected. We show that this is a robust conclusion.

Suggested Citation

  • Andersson, Linda & Hultkrantz , Lars & Mantalos , Panagiotis, 2013. "Stumpage Prices in Sweden 1909-2011: Testing for Non-Stationarity," Working Papers 2013:1, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2013_001
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    References listed on IDEAS

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    Cited by:

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    2. Ben Abdallah, Skander & Lasserre, Pierre, 2017. "Forest land value and rotation with an alternative land use," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 118-127.
    3. Panagiotis Mantalos & Lars Hultkrantz, 2018. "Estimating ‘gamma’ for tail-hedge discount rates when project returns are cointegrated with GDP," Applied Economics, Taylor & Francis Journals, vol. 50(37), pages 4074-4085, August.

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    More about this item

    Keywords

    Roundwood; timber; natural-resource rents; unit root;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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