Equilibrium management of fisheries with altruistic overlapping generations
AbstractWe imbed a classic fishery model, where the optimal policy follows a Most Rapid Approach Path to a steady state, into an overlapping generations setting. The current generation discounts future generationsâ€™ utility flows at a rate possibly different from the pure rate of time preference used to discount their own utility flows. The resulting model has non-constant discount rates, leading totime inconsistency. The unique Markov Perfect equilibrium to this model hasa striking feature: provided that the current generation has some concern forthe not-yet born, the equilibrium policy does not depend on the degree of thatconcern.
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Bibliographic InfoPaper provided by Department of Agricultural & Resource Economics, UC Berkeley in its series Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series with number qt8615756p.
Date of creation: 10 Dec 2011
Date of revision:
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Life Sciences; fisheries management; sustainable development; renewable resources; time inconsistency; hyperbolic discounting;
Other versions of this item:
- Ekeland, Ivar & Karp, Larry, 2011. "Equilibrium management of fisheries with altruistic overlapping generations," CUDARE Working Paper Series 1124, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- C - Mathematical and Quantitative Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-DGE-2012-05-22 (Dynamic General Equilibrium)
- NEP-ENV-2012-05-22 (Environmental Economics)
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.:
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