Article
Fisheries Management with Stock Growth Uncertainty and Costly Capital Adjustment
Economics Working Papers (2002–2016)
Document Type
Working Paper
Publication Date
11-1-2005
Working Paper Number
04020
Abstract
We develop a dynamic model of a fishery which simultaneously incorporates random stock growth and costly capital adjustment. Numerical techniques are used to solve for the resource-rent-maximizing harvest and capital investment policies. Capital rigidities bring diminishing marginal returns to the current period harvest, and introduce an incentive to smooth the catch over time. With density dependent stock growth, however, catch smoothing increases stock variability resulting in reduced average yields. The optimal management policy balances the catch smoothing benefits against yield loss. We calibrate the model to the Alaskan pacific halibut fishery to demonstrate the main insights.
Disciplines
File Format
application/pdf
Length
41 pages
Citation Information
Rajesh Singh, Quinn Weninger and Matthew Doyle. "Fisheries Management with Stock Growth Uncertainty and Costly Capital Adjustment" (2005) Available at: http://works.bepress.com/rajesh-singh/30/