We used a weighted average approach to reconstruct for the two new regions of each state quarterly prices for the pre-1992 period when prices were reported from three regions. Separate weights were calculated for each of the different product types (e.g.. softwood pulpwood, softwood sawtimber, etc.). The weights are based on average annual removals of the product whose price series is being reconstructed. The slide above illustrates the process for Arkansas. The black line separates Arkansas’ new regions one and two, the colored areas represent the original three regions. Numbers indicate the weights derived from removals in that area, here for hardwood poletimber. Note that weights for each new region total 100%.
