Determination of variables for soft sawnwood demand models

Abstract

The issue of input variables for demand modelling in the soft sawnwood market is addressed in the paper. The procedure is based on theoretical assumptions and possible effects of factors and on the analysis of conditions on wood and wood products market, between which there are certain links. An overview of the theoretical aspects of derived demand, the characteristics of demand on the wood and wood product markets is provided in the introductory part. It is also focused on the determination of market factors. The procedure and selection of input variables for classification into models, their quantification and methods of logical and statistical verification are defined. Basic data and variables for econometric models are captured and used to create models of domestic demand for soft sawnwood. The results represent the basic functional relationships between the factors that affect domestic demand. The benefits relate to the development of knowledge in the field of modelling of the market for wood products and represent a concretization of relevant factors of demand for soft sawnwood in the years 1990-2020 in the Slovak Republic. The basic factors that appear to be suitable for explaining the development of domestic demand for this commodity include gross domestic product, population size, number of completed dwellings, the value of construction production and the price of soft sawnwood.