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A Dynamic Economic Model of Pasture and Range Investments
Author(s) -
Burt Oscar R.
Publication year - 1971
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237432
Subject(s) - economic rent , pasture , limiting , range (aeronautics) , asset (computer security) , dynamic programming , clearing , economics , operations research , microeconomics , computer science , mathematical optimization , mathematics , geography , forestry , engineering , finance , mechanical engineering , computer security , aerospace engineering
The traditional economic replacement problem is extended to accommodate a situation where quasi‐rents of future replacements are influenced by replacement age of the currently held asset. This generalized replacement model is applied to optimal timing of the clearing of brush and scrub timber from pasture and range. Dynamic programming is applied to the problem and the structure of the decision role analyzed. An approximately optimal decision rule is deduced by an analysis of the limiting behavior of the optimal policy. An illustrative example is given for pinyon‐juniper control in southwestern United States.