The optimal harvesting problem with a land market: a characterization of the asymptotic convergence
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- Piazza, A. Econ Theory (2009) 40: 113. doi:10.1007/s00199-008-0362-8
We study the asymptotic behavior of the optimal harvesting policies for a multiple species forest with a land market, i.e., any fraction of the land can be traded at any time stage. We prove the existence of sustainable states and we discuss the conditions under which any optimal trajectory converges in the long run towards one of these states or towards the set of optimal periodic cycles. We also discuss briefly a more general problem that includes costs of converting land between the different species.