Stumpage Prices in Sweden 1909-2011: Testing for Non-Stationarity

Linda Andersson Järnberg, Lars Hultkrantz and Panagiotis Mantalos

No 2013:1, Working Papers from Örebro University, School of Business

Abstract: The price of timber stumpage is one of the few natural-resource rents that can be directly observed as a market price. Rules for optimal timber harvesting under uncertainty have been found to depend on whether the timber rent price is non-stationary or stationary. In this study we extend previous research by Hultkrantz (1995) that tested for unit-root with an exogenous break point in Swedish stumpage prices from 1909-1990, employing data up to 2011, hence for 103 years, and unit-root tests with an endogenously selected break point. We find support for a structural level break at the end of WW2 and that non-stationarity can be rejected. We show that this is a robust conclusion.

Keywords: Roundwood; timber; natural-resource rents; unit root (search for similar items in EconPapers)
JEL-codes: Q23 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013-01-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Andersson, Linda, Lars Hultkrantz and Panagiotis Mantalos, 'Stumpage Prices in Sweden 1909-2011: Testing for Non-Stationarity' in Journal of Forest Economics, 2014, pages 33-46.

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