Potential collapse in fisheries with increasing returns and stock-dependent costs

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From: Marine Resource Economics(Vol. 27, Issue 1)
Publisher: The MRE Foundation, Inc.
Document Type: Report
Length: 10,096 words
Lexile Measure: 1570L

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Abstract :

We develop a bioeconomic model to analyze a fishery with fixed costs as well as a within-season continuous cost function for the generalized Schaefer production function with increasing marginal returns to effort level. We analyze the consequences of the combined effects of increasing marginal returns and fixed costs. We find that regardless of the magnitude of the fixed costs, cyclical policies are optimal. We also demonstrate that the danger of potential collapse increases with increasing fixed costs. This result is quite counterintuitive, as higher costs are usually considered to have a conservative effect on resources. Key words Bioeconomic modeling, stock collapse, fixed costs, cyclical dynamics, increasing returns. JEL Classification Codes Q20, Q22, Q57.

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Gale Document Number: GALE|A347003763