A Bridge between Continuous and Discrete-Time Bioeconomic Models: Seasonality in Fisheries

24 Pages Posted: 1 Dec 2016

See all articles by Sturla Kvamsdal

Sturla Kvamsdal

Norwegian School of Economics (NHH)

Jose M. Maroto

Universidad Complutense de Madrid (UCM)

Manuel Moran

Universidad Complutense de Madrid (UCM)

Leif Kristoffer Sandal

Norwegian School of Economics (NHH) - Department of Business and Management Science

Date Written: November 30, 2016

Abstract

We develop a discretization method for continuous-time bioeconomic models. Based on this method, we develop a discrete-time bioeconomic model to analyze seasonality in fisheries. The discretization method consists of three steps: first, we estimate a proper growth function for the continuous-time model with the ensemble Kalman Filter. Second, we use the Runge-Kutta method to discretize the growth function. Third, we use the Bellman approach to analyze optimal management of seasonal fisheries in a discrete-time setting. We analyze both the case of quarterly harvest and the case of monthly harvest, and we compare these cases with the case of annual harvest. We find that seasonal harvesting is a win-win optimal solution with higher harvest, higher optimal steady state equilibrium, and higher economic value than obtained in the case of annual harvesting. We also demonstrate that the discretization method overcomes the errors and preserves the strengths of both continuous and discrete-time bioeconomic models.

Keywords: OR in natural resources, bioeconomic modeling, seasonal fisheries, discrete-time optimization

JEL Classification: C44, C61, Q22, Q57

Suggested Citation

Kvamsdal, Sturla and Maroto, Jose M. and Moran, Manuel and Sandal, Leif Kristoffer, A Bridge between Continuous and Discrete-Time Bioeconomic Models: Seasonality in Fisheries (November 30, 2016). NHH Dept. of Business and Management Science Discussion Paper No. 2016/20, Available at SSRN: https://ssrn.com/abstract=2877766 or http://dx.doi.org/10.2139/ssrn.2877766

Sturla Kvamsdal (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway

Jose M. Maroto

Universidad Complutense de Madrid (UCM) ( email )

Carretera de Humera s/n
Madrid, Madrid 28223
Spain

HOME PAGE: http://www.ucm.es/info/eiop/profesores.php?id=maroto

Manuel Moran

Universidad Complutense de Madrid (UCM) ( email )

Carretera de Humera s/n
Madrid, Madrid 28223
Spain

HOME PAGE: http://www.ucm.es/info/anaeco/html/manuel.htm

Leif Kristoffer Sandal

Norwegian School of Economics (NHH) - Department of Business and Management Science ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 95 93 41 (Phone)

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