Estimating the Regional Demand for Softwood Lumber in the United States

Noel D. Uri and Roy Boyd

Review of Agricultural Economics, 1990, vol. 12, issue 1, 137-147

Abstract: This study examines whether the regional demand for softwood lumber in the United States is dependent on market factors including the price of softwood lumber, the price of other building materials and economic activity, as measured by housing starts. The empirical results suggest that the quantity of softwood lumber demanded does vary in response to fluctuations in the softwood lumber price in three of the four regions considered and it does change with movements in the other explanatory factors (e.g., the price of other building materials and housing starts) in all regions. Finally, in an effort to explain the insignificance of the softwood lumber price in explaining changes in softwood lumber demanded in the West region, regression diagnostics are used. The analysis, however, sheds little light on the result.

Date: 1990
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