A Generalization of the Tree Harvesting Paradigm

Ricardo J Rodriguez

The Financial Review, 1990, vol. 25, issue 3, 501-15

Abstract: The tree harvesting paradigm finds the optimal length of each harvest cycle. Typically, only the extreme cases of one and infinite harvests are considered. The author extends the model in two ways. First, he analyzes an arbitrary number of harvest cycles and shows that the optimal cycle length decreases monotonically with the number of cycles. Second, he relaxes the restrictive assumption requiring the disappearance of positive net present value opportunities as the final cycle is harvested. Instead, he assumes these opportunities disappear after an exogenously fixed horizon. This simple change of assumptions produces solutions that may differ substantially from the traditional solutions. Copyright 1990 by MIT Press.

Date: 1990
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:25:y:1990:i:3:p:501-15

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0732-8516

Access Statistics for this article

The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

More articles in The Financial Review from Eastern Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().