on the nature of the interdependence between public and private stands, as well as on
whether the recreators have access to private forests to enjoy amenities or not.

The rest of the paper is organized as follows. Section 2 conceptualizes the
interdependence between private and exogenous forest stands in the “static,” spatial
sense and in the “dynamic,” intertemporal sense. Section 3 is devoted to the study of
optimal private harvesting under ongoing rotations, which requires the specification
of temporal interdependence between the two stands. Optimal public harvesting, when
the Forest Service is assumed to be a Stackelberg leader, is studied in section 4.
Finally, there is a brief concluding section.

2. Spatial and Temporal Interdependence between Forest Stands

This section provides characterization of the spatial and temporal interdependence
between the focal private stand and an exogenous adjacent stand in the valuation of
amenity services. As the benchmark case we also describe the relationship between
private harvesting and the exogenous stand for a single rotation.

2.1. Spatial Interdependence between the Private Stand and An Exogenous
Stand

For a single rotation the representative private forest owner is assumed to choose the
optimal harvesting time so as to maximize the utility from net harvest revenue and
amenity services according to the following quasi-linear objective function

[1] Ω = VJ + v (T ,τ ),

in which V^J = pf (T)e^-rT -c , p is the timber price, f (T) describes the growth of
timber as a function of its age with the conventional convex-concave properties
( f '(T) > 0 and f ' ' (T) > 0 for t < t and f ' ' (T) < 0, t > t, where t is the inflexion
point of the growth function) and c denotes regeneration cost.² The present value of

² In what follows the derivatives are noted by primes for functions with one argument and
the partial derivative by subscripts for functions with many arguments. Hence, e.g.

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