The tree-cutting problem in a stochastic environment: The case of age-dependent growth

The tree-cutting problem in a stochastic environment: The case of age-dependent growth

Harvest policies are derived for growing biological assets (e.g., forests, livestock) subject to stochastic age-dependent growth and price uncertainty. The task posed is analyzed as a continuous-time optimal stopping problem for diffusion processes. Both ‘single’- and ‘ongoing’-rotation problems are...

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Veröffentlicht in:Journal of economic dynamics & control 1989, Vol.13 (4), p.569-595
Hauptverfasser: Clarke, Harry R., Reed, William J.
Format: Artikel
Sprache:eng
Schlagworte:
Discount rates
Economic models
Economic theory
Factors
Growth
Market value
Prices
Random variables
Statistical analysis
Stochastic models
Studies
Timberlands
Uncertainty
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Zusammenfassung:Harvest policies are derived for growing biological assets (e.g., forests, livestock) subject to stochastic age-dependent growth and price uncertainty. The task posed is analyzed as a continuous-time optimal stopping problem for diffusion processes. Both ‘single’- and ‘ongoing’-rotation problems are considered. Qualitative comparative static and numerical results are provided.
ISSN:0165-1889
1879-1743
DOI:10.1016/0165-1889(89)90004-3