The Faustmann Model of Optimal Forest Rotation

In 1849 a German forester , Martin Faustmann, published a model for the optimal harvesting of timber. This model was almost completely ignored for more than a century; however, recently it has been the focus of a good bit of attention from both the lumber industry and resource economists.

Since the problem of determining the best harvest time is an economic one based on a biological resource, building the model requires the examination of an interesting combination of factors. In the course of doing this, the model makes very clever use of elementary calculus.