Skip to page content
USDA Forest Service

Research & Development Treesearch

Treesearch Home
About Treesearch
Contact Us
Research & Development
Forest Products Lab
International Institute of Tropical Forestry
Pacific Northwest
Pacific Southwest
Rocky Mountain
Southern Research Station
Help - We Participate  Government Made Easy

Global Forest Information Service

US Forest Service
P.O. Box 96090
Washington, D.C.

(202) 205-8333

You are here: Home / Search / Publication Information
Bookmark and Share

Publication Information

View PDF (361 KB bytes)

Title: Market structure in U.S. southern pine roundwood

Author: Bingham, Matthew F.; Prestemon, Jeffrey P.; MacNair, Douglas J.; Abt, Robert C.;

Date: 2003

Source: Journal of Forest Economics 9, 97-117 (2003)

Publication Series: Miscellaneous Publication

Description: Time series of commodity prices from multiple locations can behave as if responding to forces of spatial arbitrage. cvcn while such prices may instead be responding similarly to common factors aside from spatial arbitrage. Hence, while the Law of One Price may hold as a statistical concept, its acceptance is not sufficient to conclude market integration. We tested the factors hypothesized as linked to integration of forest products markets by applying a combination of bivariate and multivariate techniques. Bivariate cointegrntion tests were conducted for price pairs among 21 price regions and were done for both delivered southern pine sawlogs and delivered southern pine pulpwood logs. Multivariate meta-analytic regressions of cointcgration test results on hypothesized explanatory factors were run for pulpwood and sawlog markets separately. Cointegration test results offer limited support for the Law of One Price in the South for both products. Results of the meta-analytic regressions show that a proxy for the cost of product transfer between regions is statistically significant and negatively related to the probability that two local market prices arc cointegrated for only sawlogs. For pulpwood, the proxy was not significant. The results of the bivariate cointegration tests and the multivariatc meta-analyses were used to delineate apparently spatially segmented sub-markets for both products. The maps show overlapping geographical segments, resulting from both spatial arbitrage and possible output dominance for certain firms in those sub-markets.The southern pine sawlog market can be divided into four or five sub-markets, distributed north to south and east to west.The southern pine pulpwood log market can bc drawn into three, largely separate sub-markets: a coastal zone that stretches from Texas to Virginia, and two distinct interior zones.

Keywords: Law of One Price, log markets, meta-analysis, cointegration, pine

Publication Notes:

  • We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
  • This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
  • You may send email to to request a hard copy of this publication. (Please specify exactly which publication you are requesting and your mailing address.)



Bingham, Matthew F.; Prestemon, Jeffrey P.; MacNair, Douglas J.; Abt, Robert C. 2003. Market structure in U.S. southern pine roundwood. Journal of Forest Economics 9, 97-117 (2003)


 [ Get Acrobat ]  Get the latest version of the Adobe Acrobat reader or Acrobat Reader for Windows with Search and Accessibility

USDA logo which links to the department's national site. Forest Service logo which links to the agency's national site.