The objective of the course is to provide students with 
economic and financial tools needed to analyze and solve real-
world forest management problems.  The course will impart 
economics as a method of thinking in which incremental costs 
and benefits are compared to maximize net benefits.  It will 
develop decision-making skills necessary to effectively meet 
private and public goals and evaluate the impacts of policies 
and markets on forestry.

1.	Review of Economic Principles: 
Demand and supply; price, quantity, and scarcity; revenues and 
costs; production functions; marginal analysis; profit 
maximization.

2.	Market Allocation of Resources:
Market structure; the role of prices; welfare analysis; market 
failures.

3.	Capital Theory:
Interest rate; compounding and discounting.

4.	Investment Evaluation Criteria:
Net present value, internal rate of return; benefit to cost 
ratio, pay-back period; project selection criteria.

5.	Management of Forest Capital:
Financial maturity, optimal rotation length, timber stand 
improvement, and stocking.

6.	Forest Taxation:
Income, property, and forestry taxes; measuring tax impacts. 

7.	Inflation and Risk:
Real and nominal rates of return; risk-free and risky revenues; 
adjusted discount rates.
      
8.	Forest Valuation and Appraisal:
Stumpage valuation; appraising market value, appraising damage 
costs; non-timber influence on forest markets

9.	Multiple-Use Forestry:
Valuing nonmarket forest ouputs; multiple-use goals and trade-
off analyses.