@article{Lien:197916,
      recid = {197916},
      author = {Lien, Gudbrand and Stordal, Stale and Hardaker, J. Brian},
      title = {Risk Aversion and Optimal Rotation: a Stochastic  Efficiency Approach},
      journal = {Scandinavian Forest Economics: Proceedings of the Biennial  Meeting of the Scandinavian Society of Forest Economics},
      address = {2004-05},
      number = {1329-2016-103643},
      pages = {10},
      year = {2004},
      abstract = {A new stochastic efficiency analysis approach, called  stochastic efficiency with respect to a function (SERF),  that partitions a set of risky alternatives in terms of  certainty equivalents (CEs) for a specified range of  attitudes to risk, is applied to analyse average optimal  rotation strategies at different levels of forest owner's  risk aversion. Using Norwegian forest data with stochastic  timber price and volume growth, the empirical results show  that the optimal rotation length increases with increasing  degree of aversion. It is also found that the effect of  risk aversion is lower with higher interest rates, while  the size of the investment cost affects only the level of  the CE, with the forest owner's risk aversion being  relatively unimportant.},
      url = {http://ageconsearch.umn.edu/record/197916},
      doi = {https://doi.org/10.22004/ag.econ.197916},
}