A Forest-Profit Expectations Dataset for New Zealand, 1990–2008

Abstract:     
In this paper, we construct a dataset of annual expected forest profits in New Zealand from 1990-2008 at a fine spatial resolution. We do not include land values in any of our profit calculations. We estimate four measures of expected forest profits based around net present value (NPV), land expectation value (LEV), equal annual equivalent (EAE), and internal rate of return (IRR). Our estimates of expected profits are based on the assumption that land owners form their expectations adaptively; that is, they use recent data on prices and costs to form expectations. We illustrate our data by showing regional variation in each of our measures, changes over time in NPV on land in forest in 2008, and variation in NPV over space in 2008. The final dataset, working datasets, and the code used in this work are publicly available to the research community and can be accessed from the authors’ website.

Number of Pages in PDF File: 25

Keywords: Forestry, expected profits, expected investment returns, New Zealand, dataset

JEL Classification: Q5, Q15, Q23, Q24

working papers series