On 189 years of confusing debates over the König-Faustmann formula

This research provides an exhaustive analysis of theoretical issues impacting land value calculation, a crucial capital asset in forestry, and the optimal age for cutting stands using the land expectation value (LEV) formula. Various hidden assumptions have led to multiple LEV formulas, resulting in different land asset values for the same even-aged clear-cut management scenario. This confusion extends to the economic analysis of more complex silvicultural systems as well. The study aims to clarify distinctions between LEV formulas based on differing land rent theories, interpret the underlying assumptions of the mathematical models, and identify the management problems they address. Additionally, it seeks to present a unified framework for applying these LEV formulas in both theoretical and empirical forest economics to support managerial decisions. The thesis also explores the possibilities and limitations of applying the three LEV formulas to analyze various silvicultural systems and management challenges within the context of sustainable forestry. Finally, insights are provided on how the LEV formula, as a static, stand-level, market-based model, can be utilized for analyzing dynamic, forest-level, and multiple-output scenarios.