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- Title
Optimality of impulse harvesting policies.
- Authors
Erdlenbruch, Katrin; Jean-Marie, Alain; Moreaux, Michel; Tidball, Mabel
- Abstract
We 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 35:284-306, ) and Dawid and Kopel (J Econ Theory 76:272-297, ). For the steady-state solution, we explore the relation to Clark's () continuous control model.
- Subjects
RENEWABLE natural resource management; OPTIMAL control theory; DISCRETE-time systems; PROFIT; ECONOMIC policy; FORESTS &; forestry; CONSUMPTION (Economics)
- Publication
Economic Theory, 2013, Vol 52, Issue 2, p429
- ISSN
0938-2259
- Publication type
Article
- DOI
10.1007/s00199-011-0650-6