Distributive Effects of Forest Service Attempts to Maintain Community Stability

Community stability is an objective of USDA Forest Service timber sales. This paper examines that objective, and the success the Forest Service can have in attaining it, through its intended maintenance of a constant volume timber harvest schedule. We apply a three-factor, two-sector modified general equilibrium model with empirical evidence from the timber-based counties of western Montana. Departure from a market responsive timber policy can have positive impacts on the wood products sector, but the net effects on the local community are very small. The costs to the public treasury of pursuing such a policy dwarf these small community benefits