The optimal forest rotation with evolving prices.

Analyses the impacts of rising timber prices over time on optimal timber management. Provides answers with respect the expected changes in the optimal rotation length with constant exponential price increases. A dynamic programming simulation model is also used which confirms the analytical theoretical results of relative price effects on optimal rotations. Increases in the relative price level decrease the optimal rotation, while increases in the rate of price change initially increase the optimal rotation. The two impacts eventually offset each other as the rotation lengths tend to a steady state.-R.K.Turner