Title: Price projections for selected grades of Douglas-fir, coast hem- fir, inland hem-fir, and ponderosa pine lumber
Identifier: CAT92272960 (find matches)
Year: 1992 (1990s)
Authors: Haynes, Richard W; Fight, Roger D; Pacific Northwest Research Station (Portland, Or. )
Subjects: Douglas fir United States; Ponderosa pine United States; Lumber Prices United States; Forests and forestry Economic aspects United States
Publisher: (Portland, Or. ) : U. S. Dept. of Agriculture, Forest Service, Pacific Northwest Research Station
Contributing Library: U.S. Department of Agriculture, National Agricultural Library
Digitizing Sponsor: U.S. Department of Agriculture, National Agricultural Library

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and moulding shop and dimension Figure A—Ponderosa pine volume. These price markup rules are of the general form, \ Pi = b1 + b2 Pj ' . (1) where p( and p. are prices of related lumber grades and b1 and b2 are estimated coeffi- cients. The significance of the estimated coefficients b1 and b2 makes a statement about the form of the relation between the two price series. It would be a fixed amount if b2 was zero,2 a constant proportion if b1 was zero, or some combination if both b1 and b2 were nonzero coefficients. Data and Methods All historical data on the various species and grades were obtained from Western Wood Products Association (1989) reports. Projections of all-species, all-grade lumber prices were obtained from the 1989 Resources Planning Act timber assessment (Haynes 1990). The basic methods for developing grade-specific prices is similar to the method used for projecting the prices of stumpage for individual species in the National Forests (Haynes and others 1980). The methodology was the same as that used for selected grades of Douglas-fir lumber (Haynes and others 1988). The general method is based on the assumption that projected lumber prices represent the market equilibrium prices of the average of all lumber (all grades and species) produced within a region. This price is the volume-weighted average of species and grades produced, and the method used in this study assumes that it can be decomposed into its individual component parts (prices for each grade and species). 2 In economic studies, the actual value of the t>2 coefficient may be different than zero but not statistically significant; therefore, it is interpreted as being zero. 7

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