An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets

The recent lumber trade war between Canada and the United States deals with Canadian stumpage policies, Canada’s log export controls, and U.S. retaliatory duty. This study determines the appropriate level of U.S. countervailing duty (CVD) by employing a vertically interrelated log–lumber model. The theoretical results show that the U.S. CVD can be greater (will be less) than the Canadian subsidy for a vertically related log–lumbermarket (for lumber market only). Empirical results support the theoretical findings in that the U.S. CVD for the log–lumber market (lumber market alone) is 1.55 (0.91) times the Canadian subsidy.


Issue Date:
2008-04
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/45517
Published in:
Journal of Agricultural and Applied Economics, Volume 40, Number 1
Page range:
171-184
Total Pages:
14
JEL Codes:
F13
Series Statement:
JAAE




 Record created 2017-04-01, last modified 2017-08-25

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