Determinants of Log-To-Lumber Conversion Efficiency: A Washington Case Study
Log-to-lumber conversion efficiency is modeled using pooled cross-section and time-series data for individual sawmills. The analysis incorporates economic variables, technological characteristics of sawmills, and timber characteristics. To exploit optimally the panel structure of the database, fixed effects and error components models are estimated, along with the ordinary least squares model. The elasticity of substitution between sawlogs and other inputs used in manufacturing lumber is small, but statistically significant. However, the data are not adequate to rule out the conclusion that lumber production is a fixed proportions production process because relative prices may be correlated with exogenous technological change. Mill size, mill vintage, headrig type, and log diameter also are key factors that influence log use. However, once a sawmill is in place, there is a large unsystematic component to its recovery performance. For. Sci. 35(2):437-452.
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Document Type: Journal Article
Affiliations: Research Assistant Professor, CINTRAFOR, College of Forest Resources, AR-10, University of Washington, Seattle, Washington 98195.
Publication date: 1989-06-01
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