EQUIVALENCIES IN THE FISHERY
Article first published online: 10 JUL 2012
Copyright © 2012 Wiley Periodicals, Inc.
Natural Resource Modeling
Volume 26, Issue 2, pages 154–163, May 2013
How to Cite
CONRAD, J. M. and LEARD, B. P. (2013), EQUIVALENCIES IN THE FISHERY. Natural Resource Modeling, 26: 154–163. doi: 10.1111/j.1939-7445.2012.00125.x
- Issue published online: 22 APR 2013
- Article first published online: 10 JUL 2012
- Received by the editors on 8th May 2012. Accepted 13th March 2012.
- present value of net revenue;
- present value of utility
Abstract We consider the management of a resource by a sole owner whose utility depends on income and leisure. Income is generated from time spent harvesting the resource and time spent working for a wage in the nonfishing sector. Our analysis produces two results. (i) The sole owner maximizing discounted utility will seek to achieve the same steady-state optimum as a manager seeking to maximize discounted net revenue. (ii) The approach paths to the common steady-state optimum will be the same if the utility function is linear in income and separable in income and leisure. These equivalencies are illustrated in a numerical example.