Living with the Curse of Dimensionality: Closed-Loop Optimization in a Large-Scale Fisheries Simulation Model |
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| Authors: | Richard T. Woodward Yong-Suhk Wui Wade L. Griffin |
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| Affiliation: | Richard T. Woodward is associate professor and Wade L. Griffin is professor, Department of Agricultural Economics, Texas A&M University, and Yong-Suhk Wui is assistant professor, Department of Business Administration and Economics, University of Arkansas at Pine Bluff. This research is funded in part by the National Marine Fisheries Service, Award No. NA87FF0420 and by the Texas Agricultural Experiment Station. We acknowledge helpful discussion with Ken Dykema, suggestions by Paul Mitchell and other seminar participants in the Department of Agricultural Economics, Texas A&M, and the comments of two anonymous reviewers. The editorial assistance of Michele Zinn is gratefully acknowledged. |
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| Abstract: | Facilitated by remarkable increases in computational speed, simulation models are becoming more and more complex and are being increasingly used in applied economic analysis. However, computational limitations remain a major barrier to the study of dynamically optimal policies. We study the problem of carrying out dynamic optimization in conjunction with large simulation models and propose a method for working around the computational difficulties that arise in such problems. Our methods are applied to a model of the Gulf of Mexico's red snapper fishery to study the dynamically optimal total allowable catch. |
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| Keywords: | dynamic optimization fisheries numerical methods simulation modeling |
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