The economics of fishing and modern capital theory: A simplified approach

While the link between fisheries economics and capital theory has long been recognized, fisheries economics has, until the last few years, developed largely along nondynamic lines. The purpose of this article is to demonstrate that, with the aid of optimal control theory, fisheries economics can without difficulty be cast in a capital-theoretic framework yielding results that are both general and readily comprehensible.We commence by developing a dynamic linear autonomous model. The static version of the fisheries economics model is seen to be the equivalent of a special case of the dynamic autonomous model. The model is then extended, first by making it nonautonomous and second, nonlinear. Problems arising therefrom, such as multiple equilibria, are considered.