Optimal Harvesting of an Age-Structured Schooling Fishery

Biologists have criticized traditional biomass models in fishery economics for being oversimplified. Biological stock assessment models are more sophisticated with regard to biological content, but rarely account for economic objectives. This study includes a full age-structured population model for studying schooling fisheries and extends the delayed difference approach used in earlier studies. We take the total harvest as the choice variable, resulting in a simple analytical structure. The model produces optimal steady states that may be higher or lower compared to the delayed-difference formulation. The model is applied to the Baltic sprat fishery. Both ecological and harvesting cost data support specifying Baltic sprat as a schooling fishery. Given nonlinear harvesting costs, the optimal solution is a path toward a steady state with smooth annual harvest and population age structure. Sensitivity analysis shows that the optimal solution is highly dependent on the population level of the sprat’s main predator Baltic cod. A linear cost function and an interest rate below 9 % imply pulse fishing instead of smooth continuous harvesting. Given nonlinear harvesting cost, the optimal steady state yield is rather insensitive to changes in the interest rate. However, under a high cod scenario, interest rates of 10 % or higher implies that no optimal steady state exists.     

Understanding consumers' online conversation practices in the context of convenience food

The area of convenience food has become an insightful context for studying consumption because it is full of tensions and contradictions. This context has attracted an ample amount of research on buying motivations, consumer attitudes and preferences. However, the practices of consuming convenience food have remained a rather unexplored area of research. The purpose of this study is to identify and dissect consumers' online conversation practices related to convenience food. Consequently, the study uses a practice theoretical approach to analyse consumers' online conversations about the topic. Three different categories and nine different practices within them are identified. The practices are further dissected to reveal their tension‐increasing and tension‐relieving characteristics. Finally, the article draws conclusions regarding practice theory and convenience food consumption.     

Mika Tapani Widgrén

Obituary

Mika Tapani Widgrén     

A Missing Citizen? Issue Based Citizenship in City-Regional Planning

City regions are significant sites of economic development, policymaking, and everyday living. Yet in many countries they are weakly institutionalized and therefore lack established democratic practices. This article is based on a study exploring citizen participation in city-regional planning in Finland, where traditional participatory means have largely failed to invite and involve citizens. The analysis approaches city regions relationally, as evolving processes with a changing spatial shape and scope. Through the notion of lived citizenship, including the dimensions of status, practices and acts, the article reveals how the dominant ideas of citizenship in city-regional planning hide from view elements that are significant for citizen participation. Whereas people's rights to participation can largely be fulfilled on a territorial basis in municipalities and states through legal membership in political communities, in the context of weakly institutionalized city-regional planning such status-based forms of participation are typically not available. This vagueness has created an image of a missing city-regional citizenry, which the article sets out to challenge and rework through the notion of issue-based participation as lived citizenship.     

Partner Selection for International Marketing and Distribution in Corporate New Ventures

The software industry offers numerous options for a firm to arrange its international marketing activities. Although a prominent way to enter the international market is through co-operation, there is a limited amount of research regarding partner selection. The purpose of this paper is to explore how entrepreneurial corporate new ventures use partners in their international marketing. A representative case study is used to illustrate the partner selection and evaluation process in the software industry. Our findings indicate that small entrepreneurial firms can and should use partners in their internationalization. However, a more analytical approach to their selection is needed.     

Costs and benefits of forest conservation: regional and local comparisons in Eastern Finland

In addition to environmental interests vs. timber production, debates on forest conservation have typically dealt with nationwide vs. local and regional interests. While most previous studies have focused on the nationwide perspective, this paper considers the benefits and costs of existing conservation areas from the regional and local point of view. The non-market benefits of conservation are measured by means of contingent valuation. Unlike most discrete-choice CV studies, we allow for zero willingness to pay. The results of our cost-benefit analysis suggest that the aggregate benefits of conservation clearly exceed the total opportunity costs when viewed from a regional (or nationwide) perspective, but at the local level costs exceed the benefits of conservation. Differences were also found in locally vs. regionally relevant benefits and costs.     

Using basic research as a catalyst to exploit new technology-based innovations - a case study

The difficulties related to the commercialization, or even to the introduction, of new technologies and solutions to common problems are well documented. The paper presents a case on how to introduce new technology to a complex research environment, in order to catalyse its commercialization. The central theme of the approach is on understanding all the possible applications and implications that the new technology shares when implemented to replace conventional solutions. The potential customer of the new technology and the related technological domains must be mapped systematically to establish technological trajectories which overlap with the possible applications. This mapping provides the framework for detailed application analysis with pointers to the right people responsible for the potential application area.The results produced indicate that three characteristic application classes for a new technology can be mapped. Special solutions pinpoint a non-standard application area where the new design is being implemented as a prototype. Research and development based applications require collaboration with the customer as the new technology may assist in achieving the goals set for the future. System applications emphasize the use of the new technology as part of a complete and widely used conventional system. A thorough case study is documented to demonstrate the classification of alternative application areas of a new technology. Also, the evolution of a new technology through different application classes is discussed. The case technology is related to high-speed electrical machines and the potential user is CERN, the European Laboratory for Particle Physics.     

Do Financial Market Variables Show Indicator Properties Relative to Exchange Rate Returns?

This paper assesses the contemporaneous indicator properties of financial market variables relative to movements in six major developed country currency pairs. As indicator variables changes in various relative asset prices, short-term portfolio flows and currency options data are used. We find that changes in equity index differentials, short-term speculative flows and risk reversals on currency options prices exhibit consistent indicator properties for several currency pairs. Since 1999, changes in short-term interest rate differentials have gained importance as indicators. The best indicator variables explain over 50 per cent of monthly returns of the USD/EUR and GBP/USD exchange rates and over 60 per cent of the appreciation and depreciation episodes of the USD/EUR and JPY/EUR currency pairs. JEL no. F31, F32, G15, C35     

UNEMPLOYMENT PERSISTENCE AND THE SUSTAINABILITY OF EXCHANGE RATE PEGS

It is commonly thought that an open economy can accommodate output shocks through either exchange rate or real sector adjustments. We formalize this notion by incorporating unemployment persistence into a two‐sided escape clause model of currency crises. We show that unemployment persistence makes a currency peg more fragile and undermines the credibility of the monetary authority in a dynamic setting. The fragility is captured by a devaluation premium in expectations that increases the average inflation rate when the currency peg is more vulnerable to ‘busts’ than ‘booms’. This interaction between macroeconomic and microeconomic rigidities suggests that a policy reform can only be consistent if it renders either exchange rates or the economy more flexible.     

A Triangularization Algorithm without Ringshift Permutation

Triangularization methods which have provided a tool for studying the production structure of an economy are considered. The previous triangularization methods are founded on a permutation theorem which defines a necessary condition to the triangularization problem: to permute the industries in an input–output matrix so as to maximize the sum of the below-diagonal elements. This paper shows that a sufficient condition can also be defined in a branch and bound state. Consequently, a powerful triangularization algorithm can be formulated.