Stabilizing employment in a fluctuating resource economy (Q1263507): Difference between revisions

We consider a resource management problem in which the management objective is to minimize fluctuations in resource economics. Stabilizing management policies consist of memoryless state feedback control strategies for a class of discrete-time resource models which contain unknown but bounded fluctuations. The underlying theory is based on conditions developed for Lyapunov-type stability of sets. The design of the stabilizing policies is illustrated by a simulation example from resource economics. Specifically, employment of fishermen is stabilized by using a subsidizing and taxing policy in an open access common- property fishery in which the value of the resource and the resource level fluctuate, and where entry and exit dynamics are determined by fluctuating revenues obtained from the fishery.