Since 1993 a major research programme, Stochastic Decision Analysis in Forest Management has been running at Department of Economics and Natural Resources, The Royal Veterinary and Agricultural University (KVL), Copenhagen, in collaboration with Institute of Mathematical Statistics, University of Copenhagen (KU). The research is funded by the two Universities; The Danish Agricultural and Veterinary Research Council; The Danish Research Academy; The National Forest and Nature Agency; and Danish Informatics Network in the Agricultural Sciepces (DINA). A first international workshop in the research programme was held 5 - 8 August, 1996 at Eldrupgaard, Denmark, within the frameworkofacollaborationagreementbetween University of California at Berkeley (UCB) and the Danish Universities, and funded by The Danish Research Academy and the L0venholm Foundation. Having participated in the workshop, Professor Peter Berck (UCB) suggested that the papers be published along with selected papers in the same scientific field, i.e. mainly cointegration analysis of time series in forestry. The editors express their sincere appreciations to the many persons who have contributed to the realisation of the present book: participants in the research programme and the workshop, in particular Professors S0ren Johansen (KU) and Peter Berck (UCB); authors outside the programme/workshop; reviewers of the papers not previously published, in particuler Associate Professors Niels Haldrup (Aarhus University) and Henrik Hansen (KVL); and finally Mrs Mette Riis and Lizzie Rohde who did the tedious work of giving the papers a uniform style. Copenhagen, October 1998.