ABSTRACT
In looking at the economic theory of multiple-use forestry, we now turn to consideration of the dynamics of forest growth and the asset value of the forest stock.* The economic multiple-use management problem is the selec tion of a sequence of management actions so as to maximize the discounted value of net benefits from the flow of harvests and other resource services over time. In order to simplify a nevertheless complex discussion, our focus will be on the timing of timber harvests alone; no other management actions are explicitly considered. In choosing to harvest timber, one must be mindful of the value of maintaining a stock of standing timber. Standing stocks will provide for future harvests and will determine the flow of other multiple-use services over time. A timber harvest will alter, perhaps for an extended period, the flow of all services which depend upon the condition of the standing stocks.
