Optimality of impulse harvesting policies

Katrin Erdlenbruch, Alain Jean-Marie (), Michel Moreaux and Mabel Tidball ()

Economic Theory, 2013, vol. 52, issue 2, 429-459

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, 1985 ) and Dawid and Kopel (J Econ Theory 76:272–297, 1997 ). For the steady-state solution, we explore the relation to Clark’s ( 1976 ) continuous control model. Copyright Springer-Verlag 2013

Keywords: Optimal control; Impulse control; Renewable resource economics; Submodularity; C61; Q2 (search for similar items in EconPapers)
Date: 2013
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Related works:
Working Paper: Optimality of impulse harvesting policies (2013)
Working Paper: Optimality of Impulse Harvesting Policies (2010)
Working Paper: Optimality of Impulse Harvesting Policies (2010)
Working Paper: Optimality of Impulse Harvesting Policies (2010)
Working Paper: Optimality of Impulse Harvesting Policies (2010)
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DOI: 10.1007/s00199-011-0650-6

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