The development of cointegration theories and the presence of nonstationarity in time series raised serious concerns about possible spurious estimations in forest products models. Based on the results of Hsiao (1997a, 1997b), all the virtues of two-stage least square (2SLS) hold if there are...

Literature on environment and endogenous growth suggests that sustainable growth critically depends on technological innovations. In this paper, technological progress takes the form of an expansion in the variety of inputs. In a first scenario, a closed economy is endowed with a renewable...