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FORECASTING THE FUTURE FOR TIMBER *
Author(s) -
Ferguson Ian S.
Publication year - 1973
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1973.tb00118.x
Subject(s) - collinearity , econometrics , elasticity (physics) , economics , income elasticity of demand , price elasticity of supply , price elasticity of demand , demand curve , supply and demand , mathematics , macroeconomics , microeconomics , statistics , materials science , composite material
For each State a simple two‐equation model of demand and supply was fitted to post‐war data using two‐stage least squares. Prior estimates of the housing coefficient were used to break collinearity problems in the demand function. Price elasticity of demand appears to be high and income elasticity moderate but declining with increasing income. The use of these estimates in forecasting is briefly outlined.