Effects of stochastic interest rates in decision making under risk: A Markov decision process model for forest management

Effects of stochastic interest rates in decision making under risk: A Markov decision process model for forest management

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Article ID: iaor20115836
Volume: 13
Issue: 5
Start Page Number: 402
End Page Number: 410
Publication Date: Jun 2011
Journal: Forest Policy and Economics
Authors: ,
Keywords: decision: studies, markov processes
Abstract:

Markov decision process models take into account risk in forest growth, stumpage prices, and interest rates. Optimal harvest decisions are adaptive to risk and improve the net present value.

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