An econometric study of the demand for nonveneered structural panels in Canada

Using monthly time series data from January 1978 to March 1985, the demand for nonveneered structural panels (NVSP) in Canada was analyzed. Three dynamic models of varying complexity were used for this purpose. The three models considered were: 1) a stock adjustment model; 2) an adaptive price expectation model; and 3) a combination of these two models. Of these three models, the stock adjustment model was the best in terms of significance of the estimated coefficients and explanatory power. The results based on this model indicated that in the economic sense NVSP is a durable good and its demand is more sensitive to the price of plywood than to its own price. A historical pattern of substitution between the two products was also noted. While the price elasticity of NVSP was observed to be constant, the cross price elasticity declined over the period of study. This latter observation indicates that the capability of NVSP to substitute for plywood is diminishing over time.

You must be logged in to download any documents. Please login (login accounts are free) or learn how to Become a Member