A Dynamic Model of Timber Markets

Washington D.C.

1990

S. 255-264

2 Tab., 18 Lit. Ang.

Bandaufführung

64553

A theoretical model of the dynamics of timber markets is developed. The adjustment process over time which a competitive timber market should undergo as a result of unanticipated demand shifts is analyzed. The adjustment process is characterized by an initial price shock and then a relatively long period of gradually changing prices, harvest ages, and harvest levels. This adjustment leads to a new steady state characterized by a fully regulated forest managed with Faustmann rotations.