A Stochastic Bioeconomic Model with Research
AbstractThis paper provides an incremental extension of a stochastic renewable resource model (Pindyck 1984) to include population dynamics research; i.e., the rate of accrual of information regarding the stochastic evolution of the stock, as a dynamic choice variable. While Pindyck models variance in stock growth as an exogenous parameter, our formulation endogenizes this variance and characterizes the impact of scientific information accrual on both the harvest decision and the present value of rents resulting from harvest activity. We illustrate the theoretical existence of an internal optimum in research effort using a numerical example.
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Bibliographic InfoArticle provided by Marine Resources Foundation in its journal Marine Resource Economics.
Volume (Year): 20 (2005)
Issue (Month): 3 ()
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Web page: http://www.uri.edu/cels/enre/mre/mre.htm
stochastic bioeconomic model; stochastic control; fisheries management; population dynamics research; renewable resource; uncertainty; Resource /Energy Economics and Policy; Q2; Q22; C61;
Find related papers by JEL classification:
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
- Bruce McGough & Andrew J. Plantinga & Bill Provencher, 2004.
"The Dynamic Behavior of Efficient Timber Prices,"
University of Wisconsin Press, vol. 80(1), pages 95-108.
- Clark, Colin W. & Munro, Gordon R., 1975. "The economics of fishing and modern capital theory: A simplified approach," Journal of Environmental Economics and Management, Elsevier, vol. 2(2), pages 92-106, December.
- Andersen, Peder & Sutinen, Jon G., 1984. "Stochastic Bioeconomics: A Review of Basic Methods and Results," Marine Resource Economics, Marine Resources Foundation, vol. 1(2).
- Andersen, Peder, 1982. "Commercial fisheries under price uncertainty," Journal of Environmental Economics and Management, Elsevier, vol. 9(1), pages 11-28, March.
- Pindyck, Robert S, 1984. "Uncertainty in the Theory of Renewable Resource Markets," Review of Economic Studies, Wiley Blackwell, vol. 51(2), pages 289-303, April.
- Medel, Carlos A., 2011. "The Effects of Global Warming on Fisheries," MPRA Paper 28373, University Library of Munich, Germany.
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