Economic Research Institute Study paper
Utah State University
The Faustmann model has played a key role in the determination of optimal forest rotations. Faustmann (1849) developed a simple and deterministic competitive economic model, the objective of which was to maximize the present value of perpetual returns to the fixed factor, a unit of timber land. The optimal rotation problem thus viewed is a timber management problem abstracting from the multiple use characteristics of a forest stand and any environment of uncertainty. Hartman (1976) developed a modified deterministic Faustmann model where a standing forest has value in the form of "recreation", a general term used to capture non-timber forest uses. He did not consider regeneration costs and the costs of making recreation available to users.
Bhattacharyya, Rabindra N. and Snyder, Donald L., "Stumpage Price Uncertainty and the Optimal Rotation of a Multiple Use Forest: An Application of Sandmo Model" (1986). Economic Research Institute Study Papers. Paper 439.