Capital Accumulation in Open-Access Fishery: A Qualitative Dynamic Approach

Capital accumulation has been one major issue in fishery economics over the last two decades, whereby the interaction of the fish and capital stocks were of particular interest. Because bio-economic systems are intrinsically complex, previous efforts in this field have relied on a variety of simplifying assumptions. The model presented in this paper has been substantially extended and avoids some of these simplifications. Problems of tractability are surmounted by using the methodology of qualitative differential equations (QDE) applied in dynamic bio-economic modeling for the first time. The theory of QDEs also takes into account that scientific knowledge about particular fisheries is usually limited. The model is able to trace the evolution of capital and fish stock in good agreement with observed patterns, and shows that overcapitalization is unavoidable in unregulated fisheries.