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Papers Published
Abstract:
National accounting issues related to forest resources have attracted much attention recently. The net-depletion method, the most popular method for estimating aggregate changes in the value of timber stocks, tends to overstate both the depreciation of mature forests due to harvests and the appreciation of immature forests due to growth. Alternative, correct methods, which I term the net-price and El Serafy variations, can be derived from an asset valuation model that takes forest age into account. An empirical example indicates that estimates from the net-depletion method can deviate from actual values by up to 40 percent for some age classes.