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Essays on Timber Supply and Forest Taxation

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  • Markku Ollikainen
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    Abstract

    By using the two-period model, this study analyzes the effects of forest taxation on the short-term timber supply of nonindustrial private forest owners. The study consists of three separate articles and a note that have been published in forest economic journals. In each the assumption is made that either timber price or the real interest rate is uncertain; moreover, the capita1 market is either perfect or imperfect. The articles examine the effects of these factors on harvesting and the optimal design of forest taxes in terms of incentives and social welfare. The results of the analyses and the two-period model are compared to the Faustmann rotation framework in an extensive survey of forest economic literature. The survey concludes that the models are suited to different, yet complementary ends: the two-period model provides a tool for analyzing the market behavior of private forestry, and the Faustmann rotation model supplies the means for the management of public forests.

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    Bibliographic Info

    Paper provided by Government Institute for Economic Research Finland (VATT) in its series Research Reports with number 33.

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    Date of creation: 01 Jan 1996
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    Handle: RePEc:fer:resrep:33

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    Related research

    Keywords: forest taxation; timber supply; uncertainty;

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    Cited by:
    1. Gong, Peichen & Löfgren, Karl-Gustaf Löfgren, 2001. "Risk-aversion and the short-run supply of timber," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 561, Umeå University, Department of Economics.

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