| Abstract: | This paper is an attempt to measure the supply consequences of the thinning subsidy which was in operation during the cutting season 1979/80. The econometric analyses are based on a questionnaire to a sample of 2500 private non‐industrial forest owners, which was produced by the official Swedish investigation SOU 1981:81. The analyses show that it is questionable whether the subsidy did affect the total cut. The estimates of the supply increase range from an average of zero to 122 m3/owner. As a by‐product we obtain estimates of the price elasticity of the private non‐industrial forest owners supply curve. These estimates range from 0.63 to 1.69. |
