On the optimal management of a class of aquatic ecological-economic systems

This paper studies aquatic ecological±economic systems such as the Chesapeake Bay. The stability of such eco-logical±economic systems depends on the successful functioning of a small number of generalist species in a wide range of ecological and economic conditions. We ®rst characterize the persistence of such systems. We then analyze the dynamic and the stochastic aspects of the resource allocation problem faced by the manager of an aquatic ecological± economic system. This manager wishes to allocate his scarce ®nancial resources optimally among economic activities and the maintenance of the generalists species of the aquatic ecological±economic system. Ó 2001 Published by Elsevier Science B.V.