Optimal Private and Public Harvesting under Spatial and Temporal Interdependence



27


A4.1   WTτ = TFτ(s,τ)e-rsds

0

F- ( T ,τ)         r

T                 1 - e -rT

Fτ (s,τ)e-rs ds
0

Temporal Independence: FτT = 0 TτH = 0

Proof. If FτT = 0 , equation [10] reduces to

WTτ = Fτ(T,τ) - (1 -e-rT )-1 [Fτ(0,τ) - Fτ(T,τ)e-rT ]. There are two possibilities.

If


Fτ = 0, then trivially WTτ = 0 . Under Fτ0, FτT = 0 implies that

[Fτ(0,τ)-Fτ(T,τ)e-rT]=Fτ(1-e-rT)

WTτ =Fτ(T,τ)-(1-e-rT)-1Fτ(T,τ)(1-e-rT)=0. Hence, TτH =0.

Increasing Temporal Dependence: FτT0 TτH0
F (T τ)        r

Proof. i) Assume that F, > 0 Wt,0 ------------>----—

τ              Tτ             T                            - rT

1-e

Fτ (s,τ)e-rsds

0

FτT0

TFτ(T,τ)e-rsds

0


T

> Fτ (s,τ)e -rs ds

0


F- (T ,τ )(1 - e rT )
r


> TFτ(s,τ)e-rsds

0


F (T τ)        r

----τ-(-^-)--->------ . Hence, WTτ 0 so that TH > 0.

T                    1 - e-rT              Tτ                τ

Fτ (s,τ)e-rsds

0

F (T τ)        r

ii) Assume thatF, < 0 Wt < 0 ----τ-------<-----—

τ            Tτ           T                   1 - e-rT

Fτ (s,τ)e-rs ds
0

FτT0

TFτ(T,τ)e-rsds

0


T

> Fτ (s, τ)e -rs ds

0


F- (T ,τ )(1 - e -rT )

r


> TFτ(s,τ)e-rsds

0


F (T τ)        r

τ------------<-----—. Hence, WTτ > 0 so that TH > 0.

T                         -rT              Tτ                τ

1-e

Fτ (s,τ)e-rsds

0



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