Arbeitspapier
On the Elasticities of Harvesting Rules
In this paper, we rank the relative importance of the exogenous parameters upon the optimal harvesting size in a stochastic rotation problem. We show that when the tree growth follows geometric Brownian motion, the harvesting size is most elastic to the harvesting cost, followed by the interest rate, and is least elastic to the parameters of tree growth. Similar ranking holds for the linear growth case. In both cases the harvesting size is increasing and concave in the harvesting cost, bounded between two parallel lines. The harvesting decision is made according to a stochastic extension of the Faustmann formula.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 1082
- Classification
-
Wirtschaft
- Subject
-
stochastic rotation problem
the Faustmann formula
site value
homogeneity conditions
and seedling value
- Event
-
Geistige Schöpfung
- (who)
-
Chang, Fwu-Ranq
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Chang, Fwu-Ranq
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2003
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