Open AccessTHE MODELING AND ESTIMATION OF THE SHORT‐RUN SUPPLY OF ROUNDWOOD UNDER NONLINEAR INCOME TAXES
Author(s) -
Aronsson Thomas
Publication year - 1992
Publication title -
natural resource modeling
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.28
H-Index - 32
eISSN - 1939-7445
pISSN - 0890-8575
DOI - 10.1111/j.1939-7445.1992.tb00266.x
Subject(s) - econometrics , estimation , economics , nonlinear system , econometric model , consumption (sociology) , social science , physics , management , quantum mechanics , sociology
This paper deals with the theory and estimation of the short‐run supply of roundwood under nonlinear (progressive) income taxation. The theoretical part of the paper uses the two‐period consumption harvesting model to introduce nonlinear income taxes into the forest management problem and presents a simple method to determine the optimal supply of roundwood in this case. In the empirical part of the paper, the model is specified in a way suitable for econometric analysis. The estimation method is the maximum likelihood method, and the estimation results seem to support the theoretical model. Finally, some results from model simulation imply that income taxation may have a nonnegligible impact on the supply of roundwood.