A utility model for timber production based on different interest rates for loans and savings.
The paper discusses the evaluation of timber production policies with different income (timber drain) schedules. Special attention is given to the temporal smoothness of the income flow. A utility model is formulated in which the objective is to maximize a fixed consumption pattern, and m...
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| Format: | Article |
| Language: | English |
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Finnish Society of Forest Science
1985-01-01
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| Series: | Silva Fennica |
| Online Access: | https://www.silvafennica.fi/article/5244 |
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doaj-97fd9fed17634a4299750a1af4b617062020-11-25T02:34:38ZengFinnish Society of Forest ScienceSilva Fennica2242-40751985-01-0119310.14214/sf.a15423A utility model for timber production based on different interest rates for loans and savings.Lappi, JuhaSiitonen, Markku The paper discusses the evaluation of timber production policies with different income (timber drain) schedules. Special attention is given to the temporal smoothness of the income flow. A utility model is formulated in which the objective is to maximize a fixed consumption pattern, and money can be saved and borrowed at different interest rates. We thus have smoothness requirements only for consumption, the capital market then determines the smoothness of the optimal income flow. Present discounted value and maximization of even income flow criteria are special cases of the utility model. Consumption can be maximized by linear programming. A sample problem is presented. The PDF includes a summary in Finnish.https://www.silvafennica.fi/article/5244 |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Lappi, Juha Siitonen, Markku |
| spellingShingle |
Lappi, Juha Siitonen, Markku A utility model for timber production based on different interest rates for loans and savings. Silva Fennica |
| author_facet |
Lappi, Juha Siitonen, Markku |
| author_sort |
Lappi, Juha |
| title |
A utility model for timber production based on different interest rates for loans and savings. |
| title_short |
A utility model for timber production based on different interest rates for loans and savings. |
| title_full |
A utility model for timber production based on different interest rates for loans and savings. |
| title_fullStr |
A utility model for timber production based on different interest rates for loans and savings. |
| title_full_unstemmed |
A utility model for timber production based on different interest rates for loans and savings. |
| title_sort |
utility model for timber production based on different interest rates for loans and savings. |
| publisher |
Finnish Society of Forest Science |
| series |
Silva Fennica |
| issn |
2242-4075 |
| publishDate |
1985-01-01 |
| description |
The paper discusses the evaluation of timber production policies with different income (timber drain) schedules. Special attention is given to the temporal smoothness of the income flow. A utility model is formulated in which the objective is to maximize a fixed consumption pattern, and money can be saved and borrowed at different interest rates. We thus have smoothness requirements only for consumption, the capital market then determines the smoothness of the optimal income flow. Present discounted value and maximization of even income flow criteria are special cases of the utility model. Consumption can be maximized by linear programming. A sample problem is presented. The PDF includes a summary in Finnish. |
| url |
https://www.silvafennica.fi/article/5244 |
| work_keys_str_mv |
AT lappijuha autilitymodelfortimberproductionbasedondifferentinterestratesforloansandsavings AT siitonenmarkku autilitymodelfortimberproductionbasedondifferentinterestratesforloansandsavings AT lappijuha utilitymodelfortimberproductionbasedondifferentinterestratesforloansandsavings AT siitonenmarkku utilitymodelfortimberproductionbasedondifferentinterestratesforloansandsavings |
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