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Title: Incidence of the 1996 U.S.-Canada Softwood lumber agreement among landowners, loggers, and lumber manufacturers in the U.S. South
Author: Li, Yanshu; Zhang, Daowei;
Source: Forest Science 52(4):422-431
Publication Series: Scientific Journal (JRNL)
Description: A framework was developed to estimate the welfare incidence of the 1996 U.S.-Canada Softwood Lumber Agreement among producers in two-processing-stage markets--timberland owners, loggers, and lumber manufacturers--in the U.S. South. Timberland owners are the largest beneficiary whereas lumber manufacturers are the second and loggers the least. Empirically, without considering substitution effects among production inputs, timberland owners have 47.4% of total incremental producer surplus, whereas lumber manufacturers have 39.4% and loggers 13.2%. When the substitution effects are considered, timberland owners gain slightly less whereas lumber manufacturers and loggers gain slightly more. For. Sci. 52(4):422-431
Keywords: Welfare incidence, two-processing-stage variable-proportion model, probability distributions for parameters
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Li, Yanshu; Zhang, Daowei 2010. Incidence of the 1996 U.S.-Canada Softwood lumber agreement among landowners, loggers, and lumber manufacturers in the U.S. South. Forest Science 52(4):422-431.
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