Title

The Impact of site value taxation on the optimal time to cut timber when borrowing and lending rates diverge

Document Type

Article

Publication Date

9-1-1987

Abstract

The economic literature on forest taxation concludes that the timber cutting time is independent of changes in a site value tax, assuming such changes are fully capitalized into the market value of land. Adopting a continuous-time theoretical model that incorporates an imperfect capital market, it is demonstrated why empirical evidence might reject this hypothesis of "fiscal neutrality."

Publisher's Statement

© 1987 by the Society of American Foresters. Publisher's version of record: http://www.ingentaconnect.com/contentone/saf/fs/1987/00000033/00000003/art00015

Publication Title

Forest Science