ABSTRACT
Faustmann showed us the basic economic formulation of the forestry problem 164 years ago. However, since then foresters and economists have learned of a number of situations in which Faustmann’s marvelous contribution is either incomplete, inaccurate or inappropriate. Our recent experience addresses some of those – but we do not have fully accepted answers for all of them. This chapter identifies issues that remain unresolved within the discipline of economics as applied to forestry at the beginning of the twenty-first century, and then adds two more crucial concerns for policy applications.
