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| Version | User | Scope of changes |
|---|---|---|
| Jun 26 2007, 9:59 AM EDT (current) | ibrahimf | 154 words deleted |
| Jun 26 2007, 9:55 AM EDT | ibrahimf | 154 words added |
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In this paper, we examine factors affecting non-industrial private timber supply using a consistent estimation method for a limited dependent variable model. Survey data, collected in 1999 from 3,051 Finnish forest owners, includes information on objectives for ownership as well as annual harvest volumes between 1994 and 1998. Ownership objectives are identified using principal component analysis, and forest ownership objective groups are generated using K-means clustering. Along with stumpage price, reforestation costs, and directly measurable owner and forest characteristics, ownership objective groups are used as explanatory variables in estimating the supply equation. Five ownership groups were identified: multiobjective owners, investors, self-employed owners, recreationists, and indifferent owners. Statistically significant elasticity of unconditional mean harvest with respect to timber price of 1.3 is found. If nonnormality and heteroscedasticity of errors are not allowed for in this study, price effects are over estimated. Multiobjective and self-employed forest owners harvest clearly more than investors, recreationists and indifferent owners.
