The Dynamic Behavior of Efficient Timber Prices
Bruce McGough (),
Andrew J. Plantinga and
Land Economics, 2004, vol. 80, issue 1, 95-108
A simple theoreticalmodel of a tim- consist ing of Faustmann rotations evalubermarket finds that there exists a rational expecta- ated at the mean of the price process. tions equilibrium in which prices evolve according The central question addressed in this to a stationary A R (1) process.Simulations analyz e study is: what is the appropriate model of a model with a more general representation of tim- timber prices? This is an important quesber stock dynamics. Implications for the optimal tion given the prescriptive nature of the harvesting literature are: 1) market efficiency pro- timber harvesting literature3 vides little justification for random walk prices; 2) and evidence unit root tests, used in previous studies to analyz e that the form of the price process strongly the informational efficiency of timber markets, do influences the performance of a reservanot distinguish between efficient and inefficient tion price rule relative to the Faustmann markets; and 3) failure to recognize asymmetric rotation (Haight and Holmes 1991; Plandisturbances in time-series analyses of historical tinga 1998). Nonetheless, most authors aptimber prices can lead to sub-optimal harvesting pear to select the form of the price process rules.
JEL-codes: Q23 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
A subscripton is required to access pdf files. Pay per article is available.
Working Paper: THE DYNAMIC BEHAVIOR OF EFFICIENT TIMBER PRICES (2002)
Working Paper: The Dynamic Behavior of Efficient Timber Prices (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:80:y:2004:i:1:p:95-108
Access Statistics for this article
More articles in Land Economics from University of Wisconsin Press
Bibliographic data for series maintained by ().