ABSTRACT
Management of national forests entails decisions that affect many, often conflicting, resource uses such as timber production, wildlife habitat, watershed protection, livestock grazing, recreation opportunities, and aesthetic enjoyment. This economic analysis focuses on the sale of timber, especially so-called below-cost sales by the U.S. Forest Service. The case specifically addresses problems with joint production of forest outputs and allocation of associated costs. Multiple-use management of the national forests is related to economic efficiency, market effects, discounting, community stability, and timber supply. Forest management practices such as sustained yield, even flow, and allowable cut are also discussed. Insights are offered on managing forests and other resources that provide multiple-use benefits.
