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Full-Text Articles in Social and Behavioral Sciences
Tb161: Forestry Investments And Option Values: Theory And Estimation, Andrew J. Plantinga
Tb161: Forestry Investments And Option Values: Theory And Estimation, Andrew J. Plantinga
Technical Bulletins
This bulletin considers option values related to a principal problem for forestry investors, the timing of harvests. The purpose is to present a general theory of the rotation problem under uncertainty and irreversibility and provide a methodology for empirically estimating option values. Modifications of the framework for analyzing options values related to other aspects of forestry investments are also discussed.