Duality and Faustmann: Implications for the Evaluation of Landowner Behavior

摘要

This paper examines the behavioral consequences when landowners seek to minimize costs rather than maximize profits. We derive a cost function that is dual to the net present value function in the Faustmann Model. This cost function provides a theoretical foundation for studies that estimate forest production costs. We use comparative statics methodology to derive qualitative results for changes in selected policies and exogenous parameters.