Abstract
Optimal harvest rules and preharvest valuation procedures are derived for biological assets with stochastic size-dependent growth in a stochastic price environment. These issues are analyzed as continuous-time optimal stopping problems. Both the single-rotation and ongoing-rotations problems are addressed. The sensitivity of harvest and valuation rules is assessed. The results are compared with those derived from a myopic look-ahead procedure and with the corresponding findings for age-dependent growth. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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