| Abstract: | This study sets out to examine whether the demand for softwood lumber in the United States is responsive to various market factors including the price of softwood lumber, the price of other building materials, and the level of economic activity (e.g. housing starts). Concern in the analysis is focused on overcoming some of the methodological shortcomings found in previous studies of this issue. The results are conclusive. The quantity of softwood lumber demanded does respond to the various economic factors considered. Moreover, when the structural stability of the estimated relationships is investigated, the results suggest that the demand for softwood lumber regionally in the United States has remained unaltered over the sample period (1950–1985). |
