Optimal forest rotation and land values under a borrowing constraint

Journal of Economic Dynamics and Control

Volumn 25, Issue 10, 2001, Pages 1595-1627

  Tahvonen, Olli ^a   Salo, Seppo ^b   Kuuluvainen, Jari ^c  

^a FINNISH FOREST RESEARCH INSTITUTE   (Finland)

^b HELSINKI SCHOOL OF ECONOMICS   (Finland)

^c UNIVERSITY OF HELSINKI   (Finland)

Author keywords

Forest rotation model; Optimal stopping; Point input; Point output capital theory; Vintage capital

Indexed keywords

EID: 0000189705     PISSN: 01651889     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0165-1889(99)00065-2     Document Type: Article

References (38)

1. Amacher G. The design of forest taxation: a synthesis with new directions. Silva Fennica. 31:1997;101-119.
2. Aronsson, T., Carlén, O., 1997. The determinants of forest land prices: an empirical analysis. Department of Forest Economics, Report 242, Swedish University of Agricultural Sciences.
3. Binkley, C., 1981. Timber supply from private forests. Yale University, School of Forestry and Environmental Studies, Bulletin No. 92.
4. Clark, C., 1990. Mathematical Bioeconomics: The Optimal Management of Renewable Resources. Wiley, New York.
5. Clarke H., Reed W. The tree-cutting problem in a stochastic environment: the case of age-dependent growth. Journal of Economic Dynamics and Control. 13:1989;569-595.
6. Dennis D. An econometric analysis of harvest behaviour: integrating ownership and forest characteristics. Forest Science. 35:1988;1988-2104.
7. Dennis D. A probit analysis of harvest decisions using pooled time-series and cross-sectional data. Journal of Environmental Economics and Management. 18:1989;176-187.
8. Faustmann M. Berechnung des Wertes welchen Waldboden sowie noch nicht haubare Holzbestände für die Wladwirtschaft besizen. Allgemeine Forst- und Jagd-Zeitung. 15:1849;441-455.
9. Fisher, I., 1930. The Theory of Interest. Macmillian, New York.
10. Haight A. Evaluating the efficiency of even-aged and uneven-aged management. Forest Science. 33:1985;116-134.
11. Heaps T. The forestry maximum principle. Journal of Economics of Dynamics and Control. 7:1984;131-151.
12. Hirshleifer, J., 1970. Investment, Interest and Capital. Prentice-Hall, Englewood Cliffs, N.J.
13. Hyberg B., Holthausen D. The behaviour of nonindustiral private forest landowners. Canadian Journal of Forestry Research. 18:1989;330-336.
14. Ihori, T., 1996. Public Finance in an Overlapping Generations Economy. MacMillian, London.
15. Jamnick M., Beckett D. A logit analysis of private woodlot owner's harvesting decisions in New Brunswick. Canadian Journal of Forestry Research. 18:1987;330-336.
16. Johansson, O., Löfgren, K.-G., 1985. The Economics of Forestry & Natural Resources. Basil Blackwell, Oxford.
17. Koskela E. Forest taxation and timber supply under price uncertainty: credit rationing in capital markets. Forest Science. 35:1989;160-172.
18. Kuuluvainen J. Virtual price approach to short-term timber supply under credit rationing. Journal of Environmental Economics and Management. 19:1990;109-126.
19. Kuuluvainen J., Salo J. Timber supply and life cycle harvest of nonindustrial private forest owners: an empirical study of the Finnish case. Forest Science. 35:1991;1011-1029.
20. Kuuluvainen J., Tahvonen O. Testing the forest rotation model: evidence from panel data. Forest Science. 45:1999;539-551.
21. Kuuluvainen J., Karppinen H., Ovaskainen V. Landowner objectives and nonindustrial private timber supply. Forest Science. 42:1996;300-309.
22. Lyon, K., Sedjo, R., 1990. The long-term adequacy of world timber supply. Resources for the Future, Washington, DC.
23. Malmborg, G. von, 1967. Ekonomisk Planering av Lantbruksföretaget. College of Forestry, Stockholm.
24. Miller R., Voltaire K. A stochastic analysis of the tree paradigm. Journal of Economic Dynamics and Control. 6:1983;371-383.
25. Mitra T., Wan H. On the Faustmann solution to the forest management problem. Journal of Economic Theory. 40:1986;229-249.
26. Murphy P., Fortson J., Bethune J. Timber management decision making under imperfect capital markets. American Journal of Agricultural Economics. 59:1977;301-310.
27. Ohlin B. Till frågan on skogarnas omloppstid (Concerning the question of the rotation period in forestry). Economisk Tidskrift. 22:1921;89-113.
28. Pajuoja, H., 1995. Consumption and harvesting behaviour of bookkeeping farms in Finland. University of Helsinki, Department of Forest Economics, Publication 3.
29. Pontryagin, L., Boltyanskii, V., Gamkrelidze, R., Mishchenko, E., 1962. The Mathematical Theory of Optimal Processes. Interscience, New York.
30. Pressler M. Aus der Holzzuwachlehre. Allgemeine Forst- und Jagd-Zeitung. 36:1860;173-191.
31. Romm J., Tuazon R., Washburn C. Relating forestry investments to the characteristics of nonindustrial private forestland owners in Northern California. Forest Science. 33:1987;197-209.
32. Samuelson, P., 1976. Economics of forestry in an evolving society. Economic Inquiry XIV, 466-492.
33. Seierstad, A., Sydsæter, K., 1987. Optimal Control Theory with Economic Applications. North-Holland, Amsterdam.
34. Tahvonen O. Bequests, credit rationing and in situ values in the Faustmann-Pressler-Ohlin forestry model. Scandinavian Journal of Economics. 100:1998;781-800.
35. Tahvonen O., Salo S. Optimal forest rotation with in situ preferences. Journal of Environmental Economy and Management. 37:1999;106-128.
36. Toppinen A., Kuuluvainen J. Structural changes in sawlog and pulpwood markets in Finland. Scandinavian Journal of Forest Resources. 12:1997;382-389.
37. Willassen Y. The stochastic rotation problem: a generalization of Faustmann's formula to stochastic forest growth. Journal of Economic Dynamics and Control. 22:1998;573-596.
38. Yaari M. On consumer lifetime allocation process. International Economic Review. 5:1964;304-317.