## Calculation of the value which forestry land and immature stands possess for forestry, in “Martin Faustmann and the Evolution of Discounted Cash Flow

- M. FAUSTMANN
- (M. Gane, Ed.),
- 1968

Highly Influential

11 Excerpts

- Published 1993

This paper is concerned with the qualitative properties of optimal intertemporal programs in a model of point-input flow-output capital theory, when future utilities are discounted. Under a mild condition on the flow-output vector, we establish that optimal programs for every discount factor and every initial state (other than a unique stationary optimal state) will exhibit non-convergence. Furthermore, we provide a necessary and sufficient condition on the flow-output vector for which a neighborhood turnpike theorem holds; that is, long-run fluctuations on an optimal program are “small” when the discount factor is “close” to unity. Journal of Economic Literature Classification Numbers: 111, 131. ‘7 1991 Academic Press. Inc

@inproceedings{Mitra1993TheEO,
title={The Economics of Orchards : An Exercise in Point - input , Flow - Output Capital Theory *},
author={Tapan Mitra},
year={1993}
}