Optimality of Impulse Harvesting Policies
AbstractWe explore the link between cyclical and smooth resource exploitation. We define an impulse control framework which can generate both cyclical solutions and steady-state solutions. Our model can admit convex and concave profit functions and allows the integration of different stock-dependent profit functions. We show that the strict concavity of the profit function is only a special case of a more general condition, related to submodularity, that ensures the existence of optimal cyclical policies. We then establish a link with the discrete-time models with cyclical solutions by Benhabib and Nishimura (J Econ Theory 35:284â306, 1985 ) and Dawid and Kopel (J Econ Theory 76:272â297, 1997 ). For the steady-state solution, we explore the relation to Clarkâs ( 1976 ) continuous control model. Copyright Springer-Verlag 2013
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Date of creation: Apr 2010
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- Katrin Erdlenbruch & Alain Jean-Marie & Michel MOREAUX & Mabel Tidball, 2010. "Optimality of Impulse Harvesting Policies," LERNA Working Papers 10.09.315, LERNA, University of Toulouse.
- Katrin Erdlenbruch & Alain Jean-Marie & Michel Moreaux & Mabel Tidball, 2010. "Optimality of Impulse Harvesting Policies," Working Papers hal-00864187, HAL.
- Erdlenbruch, Katrin & Jean-Marie, Alain & Moreaux, Michel & Tidball, Mabel, 2010. "Optimality of Impulse Harvesting Policies," TSE Working Papers 09-150, Toulouse School of Economics (TSE).
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-22 (All new papers)
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