Nonlinear exchange rate pass-through in timber products: The case of oriented strand board in Canada and the United States
Barry Goodwin (),
Matthew Holt () and
Jeffrey P. Prestemon
The North American Journal of Economics and Finance, 2019, vol. 50, issue C
We assess exchange rate pass-through (ERPT) for U.S. and Canadian prices for oriented strand board (OSB), a structural wood panel product used extensively in U.S. residential construction. Because of its prominence in construction and international trade, OSB markets are likely sensitive to general economic conditions. In keeping with recent research, we examine regime-specific ERPT effects; we use a smooth transition vector error correction model. We also consider ERPT asymmetries associated with a measure of general macroeconomic activity. Our results indicate that during expansionary periods ERPT is modest, but during downturns, ERPT effects are larger.
Keywords: Exchange rate pass-through; Oriented strand board; Smooth transition model; Unemployment rate (search for similar items in EconPapers)
JEL-codes: E32 F10 F30 F41 L16 (search for similar items in EconPapers)
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Working Paper: Nonlinear exchange rate pass-through in timber products: the case of oriented strand board in Canada and the United States (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:50:y:2019:i:c:s1062940818303802
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