Mining of the forest and the time path of the price of timber

The paper analyzes the effect of transportation (site specific) costs and the effect of mining (depletion) of the forest on the time path of the price and of the net price of timber in two forestry models. The models differ in that one has zero costs and the other has positive costs. The analyses yield the standard mining theory results for certain cases. They also yield extentions of these results for cases with growth of the harvested trees and/or regeneration on the harvested land. The paper concludes, as one would expect, that the theory of the mine is useful in analyzing the time path of the price of timber.