An econometric analysis of the timber supply in ten north-western European countries

Author

Hanne K. Sjølie and Birger Solberg

Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, 6-9, issue 42

Abstract: The paper presents an econometric analysis of the timber supply in ten Northwestern European countries. For each country, the time series covers the years 1980 - 2006. Several factors, in addition to the log price and the growing stock, are analysed, to study the elasticity of supply. Three different models were tried, with common and individual slope and intercept coefficients. Pooled OLS estimation of the fully homogeneous model gave significance of all coefficients. We met difficulties of finding consistent estimators of all coefficients while estimating the model with homogenous slope coefficients and heterogeneous intercept. The OLS and GLS estimators are not consistent due to correlation between the explanatory variables and the latent country-specific effect. Probably because of low variation within countries, within-estimators (fixed effects) / Hausman- Taylor estimators are not appropriate instruments, they gave negative estimates of the price coefficient. OLS of the fully heterogeneous model resulted in wrong sign of many estimates. The elasticity of supply with respect to price and growing stock for all countries as a whole was in the pooled OLS found to be 0.14 and 0.88, respectively.

Keywords: Econometric analysis; timer supply; panel data; Environmental Economics and Policy; International Development; Land Economics/Use (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://purl.umn.edu/198819 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:ssfesf:198819

Access Statistics for this article

Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics is currently edited by April

More articles in Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics from  Scandinavian Society of Forest Economics Contact information at EDIRC.
Series data maintained by AgEcon Search (aesearch@umn.edu).

For further details log on website :
http://econpapers.repec.org/article/agsssfesf/198819.htm