eprintid: 4258
rev_number: 7
eprint_status: archive
userid: 351
dir: disk0/00/00/42/58
datestamp: 2016-01-15 02:05:05
lastmod: 2021-08-27 17:15:02
status_changed: 2016-01-15 02:05:05
type: article
metadata_visibility: show
item_issues_count: 1
creators_name: Novak, A.
creators_name: Kaitala, V.
creators_name: Feichtinger, G.
creators_id: AL1057
creators_id: 1555
title: Resource leasing and optimal periodic capital investments
ispublished: pub
internal_subjects: iis_pop
internal_subjects: iis_ecn
divisions: prog_pop
abstract: In this paper we analyse a fishery resource exploitation model in which a single firm or a cartel has leased the rights to manage the resources independently. Two variables, resource level and the capital level, determine the dynamics of the resource system. The leasing contract includes an incentive for the agent to maintain the resource level high. The main result is that sole-agent resource management and efficiency of the resource use do not necessarily imply that the fishery is stabilized at a unique steady state level. Instead, the optimal resource exploitation may lead to periodic capital investments in fishing vessels and gear which in turn causes cycles in the resource economy. We show analytically that nonzero discount rate and low capital depreciation rate both favor the conditions under which periodic optimal solutions may occur. Simulation results related to a Baltic herring fishery are used to illustrate the results.
date: 1995-02
date_type: published
publisher: Springer
id_number: 10.1007/BF01415673
iiasapubid: XJ-95-076
iiasa_bibref: Zeitschrift fuer Operations Research; 42(1):47-67 (February 1995)
iiasa_bibnotes: [doi:10.1007/BF01415673]
creators_browse_id: 2248
creators_browse_id: 2589
full_text_status: none
publication: Zeitschrift fuer Operations Research
volume: 42
number: 1
pagerange: 47-67
refereed: TRUE
issn: 1432-2994
coversheets_dirty: FALSE
fp7_type: info:eu-repo/semantics/article
citation:   Novak, A. <https://pure.iiasa.ac.at/view/iiasa/2248.html>, Kaitala, V., & Feichtinger, G. <https://pure.iiasa.ac.at/view/iiasa/2589.html>  (1995).  Resource leasing and optimal periodic capital investments.   Zeitschrift fuer Operations Research 42 (1) 47-67. 10.1007/BF01415673 <https://doi.org/10.1007/BF01415673>.