Chapter

The Static Economic Model of the Fishery

Trond Bjørndal and Gordon R. Munro

in The Economics and Management of World Fisheries

Published in print October 2012 | ISBN: 9780199576753
Published online January 2013 | e-ISBN: 9780191745973 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199576753.003.0002
The Static Economic Model of the Fishery

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This chapter commences with the most basic dynamic, or capital theoretic, economic model of the fishery, one that is essentially a dynamic version of the Gordon-Schaefer model examined in chapter 2. This model, although elementary, introduces us to a fundamental investment rule for determining the optimal stock of this form of natural capital. The fundamental investment rule will be encountered many times in the chapters to follow. The chapter then proceeds to develop the basic model, by relaxing a few of the initial highly restrictive assumptions. Non-linear and non-autonomous versions of the basic model are examined. The chapter concludes by demonstrating that, while the economic model of the fishery explored in the chapter is no more than basic, it can be used to analyse complex real world policy problems.

Keywords: capital theoretic; autonomous and non-autonomous models; social rate of discount; fundamental equation of renewable resource exploitation

Chapter.  6901 words.  Illustrated.

Subjects: Economic Development and Growth

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