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Economic Research Institute Study paper


Utah State University

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A discrete time optimal control forestry model is built and a shooting method solution algorithm identified. The applicability of the model and algorithm to public policies that affect forestry resources is demonstrated in an application of the model to examine the development of wood processing capacity in Southeast Asia. The necessary conditions of the optimal control model are manipulated to identify a difference equation problem with initial and terminal conditions. The solution to this boundry value problem is identified using a search routine that repetitively, numerically evaluates (shoots) the difference equations. The solution is the trajectory that satisfies the initial and terminal conditions.