ABSTRACT
The determination of the optimal harvest age for a growing forest has received a great deal of attention over the decades and is, in fact, one of the major examples used in those problems of capital theory dealing with optimal duration and rotation. Moreover, it is still an area of lively interest, undoubtedly because of the controversy among analysts and the disparity between theory and practices. This chapter analyzes the optimal harvest age of a forest if the forest provides a flow of valuable services while standing in addition to the value of the timber when it is harvested. The basic conclusion of the analysis is that the presence of recreational or other services provided by a standing forest may well have a very important impact on when or whether a forest should be harvested.
