Increasing returns and cycles in fishing

Liski, Matti; Kort, Peter M.; Novak, Andreas

doi:10.1016/s0928-7655(01)00038-0

Cited by 22 publications

(19 citation statements)

References 17 publications

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“…Nonlinearities in both the longrun price and harvest costs make the problem nonlinear in the control variable (the harvest rate). Similar nonlinearities arise in a range of different fisheries models (Boyce 1995, Liski et al 2001, Grafton et al 2006, Sarkar 2009 …”

Section: Parameters and Functional Formsmentioning

confidence: 91%

Harvesting in a Fishery with Stochastic Growth and a Mean-Reverting Price

Kvamsdal

Poudel

Sandal

2014

Environ Resource Econ

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We analyze a continuous, nonlinear bioeconomic model to demonstrate how stochasticity in the growth of fish stocks affects the optimal exploitation policy when prices are stochastic, mean-reverting and possibly harvest dependent. Optimal exploitation has nonlinear responses to the price signal and should be conservative at low levels of biological stochasticity and aggressive at high levels. Price stochasticity induces conservative exploitation with little or no biological uncertainty, but has no strong effect when the biological uncertainty is larger. We further observe that resource exploitation should be conservative when the price reverts slowly to the mean. Simulations show that, in the long run, both the stock level and the exploitation rate are lower than in the deterministic solution. With a harvest-dependent price, the long-run price is higher in the stochastic system. The price mean reversion rate has no influence on the long-run solutions.

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Section: Parameters and Functional Formsmentioning

confidence: 91%

Harvesting in a Fishery with Stochastic Growth and a Mean-Reverting Price

Kvamsdal

Poudel

Sandal

2014

Environ Resource Econ

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“…Results in Table 2 summarize relevant information on the optimal policy dynamics in di¤erent settings for a discount factor = 0:9 and di¤erent values of the AFC as de…ned in (14). In particular, columns III, IV,V and VI correspond to the solution of Problem (15) with cost function (16).…”

Section: Optimal Policy Dynamics With Avoidable …Xed Costsmentioning

confidence: 99%

“…They get this result by taking both AFC and re-entry costs into account simultaneously. Liski et al [14] improve the realism in their model by introducing ‡ow adjustment costs.…”

Section: Introductionmentioning

confidence: 99%

Continuous Harvesting Costs in Sole-Owner Fisheries with Increasing Marginal Returns

et al. 2009

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We develop a bioeconomic model to analyze a sole-owner …shery with …xed costs as well as a continuous cost function for the generalized Cobb-Douglas production function with increasing marginal returns to e¤ort level. On the basis of data from the North Sea herring …shery, we analyze the consequences of the combined e¤ects of increasing marginal returns and …xed costs. We …nd that regardless of the magnitude of the …xed costs, cyclical policies can be optimal instead of the optimal steady state equilibrium advocated in much of the existing literature. We also show that the risk of stock collapse increases signi…cantly with increasing …xed costs as this implies higher period cycles which is a quite counterintuitive result as higher costs usually are considered to have a conservative e¤ect on resources.

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“…The implications of increasing returns to scale in fishery management models suggest that cyclical as opposed to steady state utilisation of the resource is optimal (Lewis and Schmafensee 1977;Lewis and Schmafensee 1979;Clark 1990;Dawid and Kopel 1997;Liski et al 2001). The optimal harvest strategy has been characterised by infinitely short cycles so that the fishing fleet should enter and leave the fishing ground continuously.…”

mentioning

confidence: 99%

“…The optimal harvest strategy has been characterised by infinitely short cycles so that the fishing fleet should enter and leave the fishing ground continuously. Such harvest policies have been termed chattering control policies (Lewis and Schmafensee 1979;Clark 1990), In practice, it is not possible instantaneously to move fishing fleets in and out of particular fishing grounds and it has therefore been argued that adjustment costs apply (Lewis and Schmafensee 1979;Liski et al 2001). Liski et al (2001) shows that including adjustment costs can lead to optimal stable limit cycles.…”

mentioning

confidence: 99%

Economies of scale and the optimality of rotational dynamics in forestry

Termansen

2007

Environ Resource Econ

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Forest harvesting is traditionally analyzed in terms of the Faustmann rotation model. This paper considers the identification of optimal forest harvest regimes using jump controls. This approach enables the structural assumptions of clear-cut technology and identical cycles in perpetuity which are imposed in a Faustmann model to be relaxed. Jump control models permit investigation of the biological and economic conditions which favour continuous growth management regimes as opposed to clear-cut harvest regimes. A numerical solution approach to the jump control model is presented. The link between the harvest cost function and the optimal biomass path is analyzed. Economies of scale are shown to generate rotational harvest as optimal policies. Copyright Springer Science+Business Media, Inc. 2007Economies of scale, Faustmann, Forest management, Jump controls, Stock discontinuities, Q23, C61,

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Increasing returns and cycles in fishing

Cited by 22 publications

References 17 publications

Harvesting in a Fishery with Stochastic Growth and a Mean-Reverting Price

Harvesting in a Fishery with Stochastic Growth and a Mean-Reverting Price

Continuous Harvesting Costs in Sole-Owner Fisheries with Increasing Marginal Returns

Economies of scale and the optimality of rotational dynamics in forestry

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