The Impact of site value taxation on the optimal time to cut timber when borrowing and lending rates diverge
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."
Merz, T. E.
The Impact of site value taxation on the optimal time to cut timber when borrowing and lending rates diverge.
Retrieved from: http://digitalcommons.mtu.edu/business-fp/262