Journal of Forest Economics > Vol 17 > Issue 3

Pressler's indicator rate formula as a guide for forest management

Sun Joseph Chang, , Peter Deegen, ,
Suggested Citation
Sun Joseph Chang and Peter Deegen (2011), "Pressler's indicator rate formula as a guide for forest management", Journal of Forest Economics: Vol. 17: No. 3, pp 258-266.

Publication Date: 0/8/2011
© 0 2011 Sun Joseph Chang, Peter Deegen
JEL Codes:Q23
PresslerIndicator rateGeneralized Faustmann formulaQuantity incrementQuality incrementPrice incrementDynamic worldEx ante analysisEx post analysisUnanticipated changes


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In this article:
Pressler's indicator rate formula and the generalized Faustmann formula 
The separation of the stumpage value increment 
The application of the Pressler's indicator rate formula 
Discussions and conclusion 


In this paper, it is shown that Pressler's indicator rate formula is also the optimal condition for the determination of the optimal harvest age under the generalized Faustmann formula. In addition, a modern treatment of the quantity increment, quality increment, and price increment is presented. Pressler's indicator rate formula is then applied to determine the optimal harvest age in a dynamic world of unanticipated changes.