Insley, Margaret; Rollins, Kimberly - Department of Economics, University of Waterloo - 2002
This paper extends the literature on optimal tree harvesting assuming stochastic prices. With volatile prices, the … value of a stand of trees is increased when harvesting dates are flexible, depending on wood volume and product prices of … the day. Flexibility adds value because a forest owner can delay harvesting when prices are depressed, or can harvest …