An Econometric Analysis of Markets for Canadian Lumber
Keywords:Canadian lumber, market analysis, supply, demand, export, import
AbstractAn econometric model of markets for Canadian lumber has been developed and estimated from data for 33 years. Two equations for demand (domestic and export) and two for supply (domestic and import) were specified. Price elasticities of domestic demand and supply have been found to be inelastic. Per capita income appears to be the most important determinant of lumber consumption via its impact on housing demand in Canada. Housing starts in the United States determine most of the Canadian lumber exported to that country.
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