Forestry, Public Economics

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Forestry

The traditional economic problem is the timing of a sequence of harvests of timber of a stand, which is managed in perpetuity with

  1. Prices,
  2. Costs,
  3. Interest rate, and
  4. Productivity

These all are assumed constant. The aim is the maximization of present value of net benefits. The simple model was developed by Faustmann, popularly known as the Faustmann model.


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