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Biological productivity and optimal harvesting of a biological resource — An uncomplicated exercise in comparative dynamics

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  • Nævdal, Eric

Abstract

The paper presents a very simple mathematical proposition that enables easy examination of comparative dynamics when the stock of a renewable biological resource is very low. The proposition is used to prove that in the canonical schooling fisheries model the optimal harvest rate is a decreasing function of the biological productivity of the resource for low stock levels even if the optimal steady state harvest rate is an increasing function of biological productivity. The results presented here carries over to the effect of technological change in the Ramsey model as the fisheries model used here and the Ramsey model are formally equivalent.

Suggested Citation

  • Nævdal, Eric, 2023. "Biological productivity and optimal harvesting of a biological resource — An uncomplicated exercise in comparative dynamics," Economics Letters, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:ecolet:v:226:y:2023:i:c:s0165176523001234
    DOI: 10.1016/j.econlet.2023.111098
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    References listed on IDEAS

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    More about this item

    Keywords

    Optimal control; Comparative dynamics; Fisheries; Ramsey model;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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