Significance of “Aus der Holzzuwachslehre” and the Pressler Indicator Rate Formula: A Continuing Discussion

摘要

We discuss the contributions and potential contributions of M.R. Pressler’s paper “Aus der Holzzuwachslehre (zweiter Artikel)” published in Allgemeine Forst-und Jagd-Zeitung (1860). We review Pressler Indicator Rate Formula’s contributions to capital analysis, dynamic analysis, stochastic stumpage price models, multiple product class models with price premia for different products. We conclude that the Pressler Indicator Rate Formula has been underrated in the past and has the potential to be underrated in the future. We also note that the greatest future contribution of the Pressler Indicator Rate Formula may be through closer analysis of the qualitative increment.Forest economists are well aware of the history and importance of Martin Faustmann’s seminal paper, “Berechnung des Wertes welchen Waldboden sowie noch nicht haubare Holzbestande für die Waldwirtschaft besitzen” published in Allgemeine Forst- und Jagd-Zeitung, (vol. 15, 1849).2) Beginning in the 1950’s after a century of relative obscurity, interest in Faustmann’s paper increased. The paper was translated into English by David Gale in 1968, which further boosted interest. The legacy of Faustmann(1849) is well-established, it describes the capital analysis framework to choose the optimal harvest age that maximizes the value of bare land. Since 1970 hundreds of papers have been published that either extend the Faustmann analysis or use Faustmann’s analysis to examine more complex problems. The connection to the Faustmann Formula is strong enough among forest economists to be an important factor in the initiation and continued occurrence of the International Faustmann Symposia over the past 20years. From conversations at symposia, it is clear that many forest economists from throughout the world are motivated to participate in international symposium with themes based on the Faustmann analysis in part by the importance of Faustmann’s paper.