A Dynamic Model of Timber Markets
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. For. Sci. 36(2):255-264.
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