This paper presents a generalization of the classic Faustmann formula for land expectation value. The generalized Faustmann formula allows the harvest age to vary from timber crop to timber crop by letting the stumpage price, timber yield, regeneration cost, and interest rate vary from timber crop to timber crop. The generalized Faustmann formula is then shown to be a dynamic programming problem that could theoretically be solved by the forward recursive solution method. To solve the problem analytically, the first-order condition for reaching the optimal harvest age is derived. The derivation yields a compact and tidy result similar to that derived from the classic Faustmann formula. This analytical result also provides a simple solution for obtaining the optimal harvest age of any particular timber crop. In addition to presenting two empirical examples, one of a southern pine pulpwood plantation for short harvest age and one of a Douglas-fir (Pseudotsuga menziesii (Mirb.) Franco) sawtimber stand for long harvest age, the paper also examines analytically the impact of changes in both the current and future stumpage price, regeneration cost, and interest rate on the optimal harvest age. The impacts are then contrasted with those obtained under the classic Faustmann formula. The paper concludes by pointing out that it would be a rewarding endeavor to examine many topics in the timber management literature under the generalized Faustmann formula.

JEL classification: Q230 Q570Keywords: Generalized Faustmann model Continuous cover forest Uneven-aged management Loblolly-shortleaf pine forest Comparative static analysis Sensitivity analysis a b s t r a c t In this paper, a generalized Faustmann model is developed for uneven-aged management to allow the number of years and the level of residual growing stock to vary from one cutting cycle to the next. Comparative static analyses are conducted to determine the effect of changes in interest rate, stumpage price of the trees selected for harvest, the stumpage value of the residual growing stock, and the future land value on the decision variables. The model is then applied to study the uneven-aged management of a loblolly-shortleaf pine stand in south central U.S. to determine the length of the cutting cycle and the level of residual growing stock for the first cutting cycle as well as for a case involving four cutting cycles. Sensitivity analyses reveal that for the uneven-aged loblolly-shortleaf pine stand both the length of the cutting cycle and the level of the residual growing stock are very sensitive to changes in land value in the future, in the stumpage prices of trees selected for harvest, in the stumpage prices of the residual growing stock, and in the interest rate.

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and Agribusiness for their comments and suggestions to improve the thesis quality. I would also like to thank Dr. Quang V. Cao for his practical guidance and suggestions.

a b s t r a c tThis research estimated dynamic supply and demand equations for the U.S. softwood lumber using two-stage least squares. Long-run and ECM equations were derived from the estimated coefficients. Empirical data included monthly observations from 1990 to late 2006. Stationarity of the residuals was explored using Augmented Dickey-Fuller statistics. Results suggest that demand and supply elasticities in both short and long-run are relatively small compared with past studies. The Canadian softwood lumber supply to the U.S. is more price elastic than the domestic softwood lumber supply. U.S. import tariffs have had limited impact on the amount of softwood lumber imported from Canada. Technological progress and end-ofyear seasonal effects on softwood lumber demand and supply were significant over this period.