Journal of Forest Economics > Vol 17 > Issue 3

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

Sun Joseph Chang, , xp2610@lsu.edu 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. http://dx.doi.org/10.1016/j.jfe.2011.04.002

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

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In this article:
Introduction
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

Abstract

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.

DOI:10.1016/j.jfe.2011.04.002