Nonindustrial Private Forest Owners' Timber Supply and Life Cycle Harvest in Finland : 19th IUFRO World Congress

1990

1 Abb., 1 Tab., 19 Lit. Ang.

Unselbständiges Werk

9087

200086062

The timber supply and life cycle harvesting behaviour of nonindustrial private forest owners is studied by assuming effective (perceived) credit rationing. A timber supply function is estimated using Finnish micro data and the tobit model in order that the decision to enter the market and the decision how much to sell can be handled simultaneously. According to the results the hypothesis of an imperfect capital market cannot be rejected. The variables which under a perfect capital market and perfect knowledge do not affect harvesting behaviour have significant coefficients in the estimated timber supply function. Further, the average harvest of different age categories of otherwise similar forest owners decreases monotonically with the age of the owners. This supports a nonconstant lifetime harvesting pattern predicted by the life cycle model under (perceived) credit rationing.