The tree-cutting problem in a stochastic environment : the case of age-dependent growth
Date
2009-08-14T23:56:13Z
Authors
Clarke, Harry R.
Reed, William J.
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Abstract
Economically optimal harvest policies are derived for growing biological assets (e.g. forests, livestock) subject to stochastic age-dependent growth and price uncertainty. The task posed is analyzed as a continuous-time optimal stopping problem for diffusion processes. Both "single" and "ongoing" rotation problems are considered. Qualitative comparative static and numerical results are provided.