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Price dynamics in the New Zealand log market
Authors: Kurt Niquidet, Bruce ManleyPublication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2007, Issue N.Z.J.For. 52(3) 2007, pp 4-9, Nov 2007
Publisher: New Zealand Institute of Forestry
Abstract: In this article the monthly prices of logs in four New Zealand regions were examined for their stochastic properties. Of interest was whether log prices can be considered stationary or non-stationary processes. Tests which had both stationary and non-stationary null hypotheses were employed. Results support a non-stationary price process for virtually all log grades and regions. This has implications for the timing of harvesting and the valuation of timberland in the country as they suggest reserve pricing rules will yield little gain for timberland owners.