Considerations on Modeling the Market for Softwood Lumber in the United States

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This paper uses the Granger causality test to determine whether the demand for softwood lumber affects price in the current period or subsequent periods, or whether price is exogenous. This test is run for each of four geographically distinct regions in the United States. Further statistical tests are then used to detect the geographical extent of the softwood lumber market. The results indicate that demand is indeed strongly connected to prices, and that there is a national market for softwood lumber. For. Sci. 36(3):680-692.

Keywords: Granger causality; geographical market; polynomial lags; softwood lumber

Document Type: Journal Article

Affiliations: Department of Economics, Ohio University

Publication date: September 1, 1990

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