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Alternative methods of calculating optimal timber rotations: a critique of the Stokey/Lucas/Prescott tree-cutting problem

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Victor Matheson

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Abstract

The traditional question of optimally deciding when to cut down a tree is among the most commonly posed questions asked of students learning the technique of dynamic programming. This paper shows that the traditional tree-cutting example is improperly formulated when the question of replanting is addressed, derives the proper method of finding optimal harvest length, and applies this method to an empirical forest growth function.

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Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 16 (2009)
Issue (Month): 10 ()
Pages: 1079-1081
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Handle: RePEc:taf:apeclt:v:16:y:2009:i:10:p:1079-1081

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  1. Thang, Tran Cong & Burton, Michael & Brennan, Donna, 2009. "Optimal replanting and cutting rule for coffee farmers in Vietnam," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47638, Australian Agricultural and Resource Economics Society. [Downloadable!]
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This page was last updated on 2009-12-5.


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