Open AccessEQUIVALENCIES IN THE FISHERY
Author(s) -
CONRAD JON M.,
LEARD BENJAMIN P.
Publication year - 2013
Publication title -
natural resource modeling
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.28
H-Index - 32
eISSN - 1939-7445
pISSN - 0890-8575
DOI - 10.1111/j.1939-7445.2012.00125.x
Subject(s) - economics , wage , revenue , microeconomics , separable space , resource (disambiguation) , function (biology) , net income , state (computer science) , labour economics , computer science , mathematics , finance , mathematical analysis , computer network , algorithm , evolutionary biology , biology
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.