Federal Timber Restrictions and Interregional Arbitrage in U.S. Lumber

LAND ECONOMICS, Vol. 74, No. 1 (February 1998)

Posted: 4 Mar 1998

See all articles by Brian C. Murray

Brian C. Murray

Duke University

David N. Wear

Government of the United States of America - US Forest Service

Abstract

Harvesting restrictions to protect the habitat of the northern spotted owl on federal forests in the Pacific Northwest (PNW) substantially reduced timber available for processing by the forest products industry. We consider the extent to which these restrictions may have altered the degree of integration of the PNW and U.S. South in a national market for lumber. Descriptive statistics and econometric analysis of monthly price data suggest that a structural break occurred in the relationship between the two regions' product prices around the time of the harvest restrictions leading to a more integrated market after the restrictions were imposed.

JEL Classification: Q23, Q28

Suggested Citation

Murray, Brian C. and Wear, David N., Federal Timber Restrictions and Interregional Arbitrage in U.S. Lumber. LAND ECONOMICS, Vol. 74, No. 1 (February 1998). Available at SSRN: https://ssrn.com/abstract=57429

Brian C. Murray (Contact Author)

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

David N. Wear

Government of the United States of America - US Forest Service

1400 Independence Ave., SW
Madison, WI 87109

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