Concerning timber supply of non-industrial private forest owners

• Published in: Schweizerische Zeitschrift für Forstwesen Vol. 159; no. 12
• Main Author: Deegen, P., Technische Universitaet Dresden, Dresden (Germany). Institut fuer Forstoekonomie und Forsteinrichtung
• Format: Journal Article
• Language: German
• Published: 01.12.2008
• Subjects: BOIS; BOSQUES; COMPETENCIA ECONOMICA; CONCURRENCE ECONOMIQUE; ECONOMIA FORESTAL; ECONOMIC COMPETITION; ECONOMIE FORESTIERE; FORESTRY ECONOMICS; FORESTS; FORET; http://www.fao.org/aos/agrovoc#c_3062; http://www.fao.org/aos/agrovoc#c_4614; http://www.fao.org/aos/agrovoc#c_4881; http://www.fao.org/aos/agrovoc#c_49864; http://www.fao.org/aos/agrovoc#c_6192; http://www.fao.org/aos/agrovoc#c_7523; http://www.fao.org/aos/agrovoc#c_8421; MADERA; MODELE; MODELOS; OFERTA; OFFRE; PRIVATE OWNERSHIP; PROPIEDAD PRIVADA; PROPRIETE PRIVEE; SUPPLY; WOOD
• ISSN: 0036-7818

The paper presents deductive-mathematical analyses regarding short and long-term timber supply of non-industrial private forest owners using several papers of Tahvonen and Tahvonen et al. With the help of an intertemporal dynamic consumer model based on the Faustmann tradition, the effects of utility in situ, non-forest income and credit rationing are investigated: The higher the utility in situ and the non-forest income, the higher is the quantity of the long-term timber supply and the lower the quantity of short-term timber supply. The higher the timber price and the market interest rate, the lower the quantity of the long-term timber supply and the higher the quantity of short-term timber supply. Credit rationing leads to essential modifications of those results. The found results also differ strongly from analyses of the pure case of intertemporal profit maximizers. In the second part inductive-empirical studies concerning timber supply of non-industrial private forest owners are presented as well. Reference is made to two papers with review characteristics in which cases from North America and Scandinavia are analysed. In the third part the results of the two different methods are compared and the relations of these two methods are discussed. Special emphasis is given to the fact that deduction shall not equalize theory and the inductive-empirical method shall not be synonym for reality or practice. Instead inductive-empirical research is also theory. Finally it is explained that the low quantity of short-term timber supply by non-industrial private forest owners is not a result of market failure but of a more complex competition among the different usages of forests that emerged in modern societies.