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Equilibrium management of fisheries with altruistic overlapping generations AgEcon
Ekeland, Ivar; Karp, Larry S.; Sumaila, Ussif Rashid.
We imbed a classic fishery model, where the optimal policy follows a Most Rapid Approach Path to a steady state, into an overlapping generations setting. The current generation discounts future generations’ utility flows at a rate possibly different from the pure rate of time preference used to discount their own utility flows. The resulting model has non-constant discount rates, leading to time inconsistency. The unique Markov Perfect equilibrium to this model has a striking feature: provided that the current generation has some concern for the not-yet born, the equilibrium policy does not depend on the degree of that concern.
Tipo: Working Paper Palavras-chave: Fisheries management; Sustainable development; Renewable resources; Time inconsistency; Hyperbolic discounting; Production Economics; Q01; Q22; C 61.
Ano: 2011 URL: http://purl.umn.edu/123635
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