A Hotelling-Faustmann explanation of the structure of christmas tree prices

Tomislav Vukina; Christiana E. Hilmer; Dean Lueck

doi:10.1111/0002-9092.00174

A Hotelling-Faustmann explanation of the structure of christmas tree prices

Tomislav Vukina, Christiana E. Hilmer, Dean Lueck

Research output: Contribution to journal › Article › peer-review

5 Scopus citations

Abstract

We examine the relationship between a tree price and a tree age (height) using a Hotelling-Faustmann type model of optimal plantation management, which accounts for the possibility of replanting and biological growth. The model predictions are tested using the data on Christmas tree prices in North Carolina collected in December 1997. The estimates show that, in general, the rates of change in prices between adjacent age cohorts reflect a competitive equilibrium in the capital market thus supporting the Hotelling-Faustmann paradigm.

Original language	English (US)
Pages (from-to)	513-525
Number of pages	13
Journal	American Journal of Agricultural Economics
Volume	83
Issue number	3
DOIs	https://doi.org/10.1111/0002-9092.00174
State	Published - 2001
Externally published	Yes

Keywords

Capital theory
Discrete time optimal control
Uneven-aged forest management

ASJC Scopus subject areas

Agricultural and Biological Sciences (miscellaneous)
Economics and Econometrics

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10.1111/0002-9092.00174

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AU - Lueck, Dean

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AB - We examine the relationship between a tree price and a tree age (height) using a Hotelling-Faustmann type model of optimal plantation management, which accounts for the possibility of replanting and biological growth. The model predictions are tested using the data on Christmas tree prices in North Carolina collected in December 1997. The estimates show that, in general, the rates of change in prices between adjacent age cohorts reflect a competitive equilibrium in the capital market thus supporting the Hotelling-Faustmann paradigm.

KW - Capital theory

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KW - Uneven-aged forest management

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A Hotelling-Faustmann explanation of the structure of christmas tree prices

Abstract

Keywords

ASJC Scopus subject areas

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