The solution to the problem of how long a present valve maximizing forester should let trees grow has a long history in the literature of economics and forestry. Until recently, however, the comparative statics of the forestry problem when there are two decision variables, an initial input at...

The problem of optimal depletion of old-growth forests and establishment of plantations is explored. The old-growth has value for the timber products it contains and the wilderness services it provides if left unharvested. The optimal amount of wilderness preserved in the steady-state is...

In this paper the ability to sign supply-side option value is studied. The compensating and equivalent option prices are defined, and it is argued that equivalent option price is the preferred welfare measure. In the absence of income risk, if the probability distribution of supply is degenerate...

A two sector general equilibrium model is developed in which households can influence the government's choice of the relative price of traded goods and the level of public goods supplied to each sector. The model is used to illustrate key problems addressed by the political economy literature,...