Heterogeneity among agent types and second-best management for non-market ecological services

Second-best management affects different agent types differently, and heterogeneity among agents may create instances when only second best management is feasible. Capital-theoretic bioeconomic modeling often has imposed representative agent assumptions that may not capture this heterogeneity. Interactions between agent heterogeneity and second-best management have received little attention. Such heterogeneity is particularly important when management actions do not directly affect extensive margin decisions. We employ a microparameter model in a dynamic bioeconomic model to incorporate agent heterogeneity and intensive and extensive margin decisions for a nonmarket good, recreational fishing. The model yields qualitatively different management recommendations when a representative agent is assumed than when heterogeneity is included using the microparameter approach.


Issue Date:
Apr 15 2009
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/48995
Total Pages:
31
JEL Codes:
Q20; Q22; Q26




 Record created 2017-04-01, last modified 2017-08-25

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