Skip to main content

Forest Taxation and Timber Supply under Price Uncertainty: Credit Rationing in Capital Markets

Buy Article:

$29.50 plus tax (Refund Policy)

Abstract:

This paper provides a detailed analysis of timber harvest decisions under price uncertainty and credit rationing. Under these circumstances the Fisherian separation theorem no longer holds. Instead, the harvesting decisions of forest owners depend on their consumption preferences. The implications of this nonseparability between consumption and harvesting decisions under credit rationing are developed for various individual forest taxes as well as for various changes in the structure of forest taxes, which will keep the government's tax revenues constant. The importance of credit rationing lies in the fact that the distribution of revenues between the current and future period affects harvesting decisions. Hence, the taxes and tax policies that affect this revenue distribution bring about liquidity effects, which may make the effects of taxes sharply different from those found in the presence of perfect capital markets. For. Sci. 35(1):160-172.

Keywords: "imperfections."; Timber supply; capital market; forest taxes

Document Type: Journal Article

Affiliations: Department of Economics, University of Helsinki, Aleksanterinkatu 7, 00100 Helsinki, Finland

Publication date: March 1, 1989

More about this publication?
  • Membership Information
  • ingentaconnect is not responsible for the content or availability of external websites
saf/fs/1989/00000035/00000001/art00014
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more