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Journal Articles Economic Theory Year : 2013

Optimality of impulse harvesting policies


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 pol- icies. 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.

Dates and versions

hal-00862924 , version 1 (17-09-2013)



Katrin Erdlenbruch, Alain Jean-Marie, Michel Moreaux, Mabel Tidball. Optimality of impulse harvesting policies. Economic Theory, 2013, 52 (2), pp.429-459. ⟨10.1007/s00199-011-0650-6⟩. ⟨hal-00862924⟩
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