Classical turnpike theory and the economics of forestry

Khan, M. Ali and Piazza, Adriana (2011) Classical turnpike theory and the economics of forestry. Journal of Economic Behavior and Organization, 79 3: 194-210. doi:10.1016/j.jebo.2011.01.030

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Author Khan, M. Ali
Piazza, Adriana
Title Classical turnpike theory and the economics of forestry
Journal name Journal of Economic Behavior and Organization   Check publisher's open access policy
ISSN 0167-2681
Publication date 2011-08
Sub-type Article (original research)
DOI 10.1016/j.jebo.2011.01.030
Volume 79
Issue 3
Start page 194
End page 210
Total pages 17
Place of publication Amsterdam, Netherlands
Publisher Elsevier
Collection year 2012
Language eng
Formatted abstract
Classical turnpike theory, as originally conceived by Samuelson, pertains to optimal growth theory over a large but finite time horizon with given initial and terminal stocks. In this paper, we present two turnpike results in the context of the economics of forestry with given initial and terminal forest configurations. Our results depart from the general theory in that they concern a transitional production set which does not satisfy the assumptions of inaction and free disposal, and rely on a recently discovered non-interiority assumption on concave (not necessarily differentiable) benefit functions that implies, and is implied by, the asymptotic convergence of good programs.

Research highlights ► We develop two classical turnpike results for the Mitra–Wan forestry model. ► The transition production set does not satisfy assumptions of inaction and free-disposal. ► We consider approximately optimal, large but finite-horizon programs. ► We work with a novel non-interiority assumption on concave benefit functions. ► We list three open questions.
Keyword Turnpike theory
Asymptotic convergence
Good program
Approximately optimal program
Large but finite time horizon
Forest management
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes Available online 10 February, 2011.

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2012 Collection
School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 1 times in Thomson Reuters Web of Science Article | Citations
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Created: Mon, 21 Feb 2011, 12:05:15 EST by Alys Hohnen on behalf of School of Economics