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Re-examining the theories supporting the so-called Faustmann formula

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Recent Accomplishments in Applied Forest Economics Research

Part of the book series: Forestry Sciences ((FOSC,volume 74))

Abstract

This article deals with some theoretical problems affecting the calculation of the land capital asset value in forestry in regard to the König-Faustmann or land expectation value formula (LEV). Several conditions have produced the co-existence of different LEV formulas, which generate different land asset values for the same forest management problem. This problem was probably generated given different economic traditions, forest management concepts and scientific paradigms which illustrated the even-aged clear-cut (EAC) stand management problem in different ways with the LEV formula. The aim of this research is to make an explicit distinction between these different LEV formulas based on different land rent theories, interpret the assumptions behind the mathematical models, and state the management problems that they want to define. Thus, it is intended to present a unified framework for the applications of these LEV formulas in theoretical and empirical forest economics and to support managerial decisions.

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Authors
  1. Guillermo A. Navarro
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Editors and Affiliations

  1. Department of Economics and Natural Resources, The Royal Veterinary and Agricultural University, Copenhagen, Denmark

    F. Helles , N. Strange  & L. Wichmann ,  & 

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Navarro, G.A. (2003). Re-examining the theories supporting the so-called Faustmann formula. In: Helles, F., Strange, N., Wichmann, L. (eds) Recent Accomplishments in Applied Forest Economics Research. Forestry Sciences, vol 74. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-0279-9_2

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  • DOI: https://doi.org/10.1007/978-94-017-0279-9_2

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-90-481-6221-5

  • Online ISBN: 978-94-017-0279-9

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