Optimal forest rotation and land values
✍
Olli Tahvonen; Seppo Salo; Jari Kuuluvainen
📂
Article
📅
2001
🏛
Elsevier Science
🌐
English
⚖ 356 KB
This study relaxes the assumption of perfect capital markets in the classical Faustmann forest rotation model. A constraint on borrowing changes all the basic properties of optimal forest harvesting. Instead of a constant rotation period, an in"nite chain of rotations is determined by a nonlinear di