ANALYSIS OF FACTORS THAT INFLUENCE THE LOG PRICE FOR MECHANICAL PROCESS IN THE STATE OF PARANA

Abstract

The understanding of price formulation is decisive to plan any activity and becomes more important to forests activities, since the production is take in long range. The objective of this work was to estimate the elasticity of the main variables that affect the stumpage price for the mechanical processing in the state of Parana’s market. An econometric model was carried out with the following explanatory variables: per capita income, exchange rate, pulpwood price and productivity. The logarithmic functional form model was performed through ordinary least squares method (OLS). The annual data refers to 1988-2004 period. The results indicated an elastic sensibility to the productivity, close to the unitary for the per capita income and inelastic to exchange rate and pulpwood price.