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Caring for the land and serving people
United States Department of Agriculture
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Alaska softwood market price arbitrage.
Author(s): James A. Stevens; David J. Brooks
Date: 2003
Source: Res. Pap. PNW-RP-556. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 12 p
Publication Series: Research Paper (RP)
Station: Pacific Northwest Research Station
PDF: View PDF (238 KB)Description
This study formally tests the hypothesis that markets for Alaska lumber and logs are integrated with those of similar products from the U.S. Pacific Northwest and Canada. The prices from these three supply regions are tested in a common demand market (Japan). Cointegration tests are run on paired log and lumber data. Our results support the conclusion that western hemlock (Tsuga heterophylla (Raf.) Sarg.) and Sitka spruce (Picea sitchensis (Bong.) Carr.) logs from Alaska share an integrated market with logs produced in the other two regions. Results are less clear for lumber. Given this evidence that markets are at least imperfectly integrated, Alaska production and exports of forest products will continue to be sensitive to international market conditions, including competition from other North American producing regions.Publication Notes
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Citation
Stevens, James A.; Brooks, David J. 2003. Alaska softwood market price arbitrage. Res. Pap. PNW-RP-556. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 12 pCited
Keywords
Arbitrage, markets, cointegration, Alaska, softwood, pricesRelated Search
- Domestic market opportunities for Alaska lumber-species preferences by secondary wood products manufacturers in the continental United States.
- Sitka spruce and western hemlock beach logs in southeast Alaska: suitability for lumber, pulp, and energy.
- Timber productivity of seven forest ecosystems in southeastern Alaska.
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