Vertical price linkage between timber and forest products prices in the South
نویسندگان
چکیده
Timber market and forest product market are linked and integrated through prices of their own. In this study, the presence of price transmission asymmetry is investigated for wood products sector in southern United States. Threshold cointegration and an asymmetric error correction model are employed to analyze the price dynamics between prices of standing timber, delivered timber and also two representative lumber prices. Cointegration tests confirm the integration and efficiency of timber market in the South. The estimated results of error correction model reveal that the asymmetric price transmissions exist only when price of the lumber board is linked with upstream prices. While generally, cumulative effects are symmetric. Moreover, if there is any adjustment path asymmetry, adjustment from positive deviations always requires longer time than that from negative deviations when lumber prices are set as driving forces. But asymmetric transmission is not a prevalent phenomenon in southern timber market.
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