In this paper we apply an innovative econometric tool to estimate markups in an output market. The contribution of the paper is in the novel use of the stochastic frontier approach that is widely used to estimate efficiency. We show that this method, which we call the stochastic frontier estimator of market power, can be used both in the dual cost function framework and in the primal framework, and that mark-ups can be estimated with or without constant returns to scale. We apply this method to the Norwegian sawmilling industry, 1974-91.

Politics increasingly introduces initiatives supporting a shift toward a bioeconomy aiming at a society relying strongly on renewable biological sources while achieving economic growth efficiently and sustainably. However, the agenda of bioeconomy comprises different "shades of green," in the sense that different actors stress different aspects of the concept, when embracing it in communication. This conceptual paper aims to present policy and socioeconomic theoretical frameworks and research areas relevant for a more holistic understanding of the bioeconomy concept applied to the forest sector, and identify a core set of potential contributions from social sciences for enhancing the bioeconomy in the forest sector. The paper focuses on studies within policy analysis, economics, and business administration disciplines. Thus it presents diverse disciplinary perspectives on the forest sector in a bioeconomy. Furthermore, innovation and sustainability have been identified as issues relevant to be approached across these disciplines.

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A sample selection framework that simultaneously takes into account the two-step decisionmaking of forest owners (first whether or not to harvest, second the level of harvesting) is applied on representative cross-sectional data for forest properties and owners in Norway. Forest management plans, property size, forested area and income from agriculture are found to increase both the propensity to harvest and the harvesting levels. Income from engagement in other outfield-related productions and debt burden increase the propensity to harvest only, while increased age impact negatively on the harvesting decision. Wage income affects both propensities to harvest and harvesting levels negatively. The results suggest that other onproperty productions may stimulate harvesting decisions, while off-property income impact harvesting decisions and levels negatively.