Renewable Resources with Endogenous Age Classes and Allocation of Land

It is shown that if it is optimal to allocate all land to forestry, the long-run stationary state is a cyclical solution around an equilibrium with an even timber flow. The equilibrium cycles vanish when it is optimal to allocate some fraction of land outside forestry. We present numerical examples on the transitional dynamics and longand short-run timber supply. When land conversion is costly, the cycles do not vanish and the long-run equilibrium between forestry and agriculture is represented by a continuum.