Stochastic forest growth with harvesting and recovery decisions
A stochastic forest rotation model in the Faustmann tradition is presented and exemplified. The model combines harvesting decisions with options to recover or clean up to restore the land after very unfavorable evolutions of the stochastic growth process. Uncertainty is shown to have a generally ambiguous e?ect on the optimal choice of investment strategy. It is also shown how such models can be related to theory of optimal inventory control.
Publisert i 10th Annual international real optionc conference, 2006
Les artikkelen her