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. For the cyclical solution, we establish a link with the discrete-time model by Dawid and Kopel (1997). For the steady state solution, we explore the relation to Clark's (1976) continuous control model. Our model can admit convex and concave profit functions and allows the integration of different stock dependent cost functions. We show that the strict convexity 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.
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Bibliographic InfoPaper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 603.
Date of creation: Apr 2010
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- 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).
- 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.
- 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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