ecological economic viability as a criterion of strong sustainability under uncertainty strong sustainability according to the common definition requires that different natural and economic capital stocks be maintained as physical quantities separately yet in a world of uncertainty this cannot be guaranteed to therefore define strong sustainability under uncertainty in an operational manner we propose to use the concept of viability viability means that the different components and functions of a dynamic stochastic system at any time remain in a domain where the future existence of these components and functions is guaranteed with sufficiently high probability we develop a unifying and general ecological economic concept of viability that encompasses the traditional ecological and economic notions of viability as special cases it provides an operational criterion of strong sustainability under a mild form of uncertainty and for medium spatial and temporal scales we illustrate this concept and demonstrate its usefulness by applying it to livestock grazing management in semi arid rangelands publication ecological economic viability as a criterion of strong sustainability under uncertainty available from https www researchgate net publication 46490456 ecological economic viability as a criterion of strong sustainability under uncertainty accessed apr 3 2017

economic viability and small scale fisheries a review abstract globally over 90 of all fishing vessels and about 22 million fishers are considered small scale despite their high numbers small scale fisheries are often understudied they are usually economically and politically marginalized and therefore vulnerable to large scale threats e g globalized markets to support this sector and contribute to its sustainability we argue that it is fundamental to understand how economically viable small scale fisheries are hence the main objective of this article is to critically review and describe the current discourse on the economic viability of small scale fisheries we find that currently economic viability is mainly equated with financial viability where profitability is the goal in consideration of socio economic aspects the maintenance of nonnegative net benefits to society is often not considered in current notions of economic viability while these shortcomings have been acknowledged in some of the existing literature our review shows that they have not yet been addressed comprehensively we therefore conclude that it is necessary to develop or expand current methods to better take into account social aspects when assessing the economic viability of small scale fisheries this would help find solutions to make these fisheries less vulnerable and better equipped to face large scale processes of change

reducing drunken driving which policies are most effective traffic fatalities are the leading cause of accidental deaths and the leading cause of all deaths for people between the ages of 16 and 25 4 a major cause of traffic accidents is drunken driving reed 12 estimates that the annual number of deaths could be reduced by 12 000 if all drunken driving were eliminated recently increased attention has been directed toward finding ways to reduce the incidence of drunken driving this paper evaluates the relative effectiveness of several policies in terms of reduced fatalities these policies include raising the minimum legal drinking age increasing legal sanctions and enforcement and increasing the price and reducing the availability of alcoholic beverages most studies have focused on a single policy studies by cook 3 mccornac 7 and williams et al 16 examined the effect of raising the minimum legal drinking age their results indicate that auto fatalities have fallen in states where the minimum legal drinking age has been increased ross 13 and votey 15 both examined the drunken driving deterrence policies in scandanavian countries ross was unable to show that they had any effect on behavior using a more sophisticated model votey concluded that the severe deterrence policies reduced the incidence of drunken driving cook and tauchen 2 found that increasing taxes on alcoholic beverages reduced consumption and led to fewer auto fatalities and a lower incidence of cirrhosis death

price clustering in australian water markets the finding of clustering in financial prices on particular digits is common across a broad range of financial markets this article explores whether price clustering is also present in the case of the weekly market for seasonal water in rural victoria australia we find a similar degree of clustering in the seasonal water market this suggests that the trading activities of the market produce characteristics that are similar to more sophisticated and deeper financial markets

the triple bottom line meeting ecological economic and social goals with individual transferable quotas this paper deals with the sustainable management of a renewable resource based on individual and transferable quotas itqs when agents differ in terms of harvesting costs or catch capability in a dynamic bio economic model we determine the feasibility conditions under which a fishery manager can achieve sustainability objectives which simultaneously account for stock conservation economic efficiency and maintenance of fishing activity for the agents along time we show how the viability of quota management strategies based on itq depends on the degree of heterogeneity of users in the fishery the current status and the dynamics of the stock together with the selection of tac schedules in particular for a given stock we compute the maximin effort for a given set of agents and we derive the maximal number of active agents for a given guaranteed effort an application to the nephrops fishery in the bay of biscay illustrates the results

storage and viability of a fishery with resource and market dephased seasonalities in this study we analyse the role of the storageregulation in a fishery s production process when theresource exploited and the market to which theproduction is exported are characterized by seasonaldephased oscillations for this purpose we built up adynamic model drawn from the french guyana shrimpfishery example the underlying objective of the modelis not the maximisation of a given criterion as wouldbe in the optimal control approach but merely themaintenance of the fishery s economical viability thefundamental principle is here to try to preserve asmany as possible viable control options theconditions to achieve and maintain this viability arecaptured in a certain number of constraints theanalysis points out periods and situations within theseason where the fishermen must anticipate theevolution of their storage to avoid violating thoseviability constraints the study also indicates howthe fishery s viability can be ensured even if theexploitation costs exceed the commercial value of thelandings for a finite part of the year however whenthe resource s and or market s oscillations are toolarge the fishery may be not viable any longer and itappears that the crisis can not be removed byinvesting in larger storage capacities

a step beside the maximin path can we sustain the economy by following hartwick s investment rule si la durabilite est interpretee comme la necessite de soutenir le niveau de consommation ou d utilite alors l utilisation d un critere maximin est pertinente l economie soutenable est caracterisee par un niveau d investissement optimal qui satisfait la regle d investissement d hartwick cet article examine comment la durabilite d une economie basee sur une ressource non renouvelable est modifiee au voisinage du sentier maximin c est a dire lorsque la consommation ou les prix sont sous optimaux un indicateur de consommation soutenable est propose pour caracteriser la durabilite des sentiers de consommation constante definis comme des deviations au sentier maximin on decrit en particulier comment une sur consommation presente diminue la soutenabilite de l economie pour les generations futures

a viability analysis for a bio economic model abstract this paper presents a simple dynamic model dealing with the management of a marine renewable resource but instead of studying the ecological and economic interactions in terms of equilibrium or optimal control we pay much attention to the viability of the system or in a symmetric way to crisis situations these viability crisis situations are defined by a set of economic and biological state constraints the analytical study focuses on the compatibility between the state constraints and the controlled dynamics using the mathematical concept of viability kernel we reveal the situations and if possible management options to guarantee a perennial system going further we define overexploitation indicators by the time of crisis function in particular we point out irreversible overexploitation configurations related to the resource extinction

maximum economic yield fishery management in the face of global warming abstract this paper deals with fishery management in the face of the ecological and economic effects of global warming to achieve this a dynamic bioeconomic model and model based scenarios are considered in which the stock s growth function depends on the sea surface temperature the model is empirically calibrated for the french guiana shrimp fishery using time series collected over the period 1993 2009 three fishing effort strategies are then compared under two contrasted ipcc climate scenarios rcp 8 5 and rcp 2 6 a first harvesting strategy maintains the status quo in terms of fishing effort a more ecologically oriented strategy based on the closure of the fishery is also considered a third strategy which relates to maximum economic yield mey is based on the optimisation of the net present value derived from fishing the results first show that status quo fishing intensity combined with global warming leads to the collapse of the fishery in the long run secondly it turns out that the closure strategy preserves stock viability especially under the optimistic climate scenario thirdly the mey strategy makes it possible to satisfy bioeconomic performances requirements with positive stock and profit once again especially under the optimistic warming scenario consequently mey emerges as a relevant bioeconomic strategy in terms of adaptation to climate change but only in connection with climate change mitigation

price clustering on the shanghai stock exchange abstractwe investigate price clustering of intraday trades and negotiated block trades on the shanghai stock exchange sse from 2003 to 2009 prices of traded assets tend to cluster on certain final digits such as 0 and 5 in chinese culture 8 is associated with good luck and 4 with death so these numbers may be attractive or avoided we find that price clustering on the final digit of 0 is significantly higher during the morning call auction and early in the trading day we find no evidence of price clustering for the digit 8 but there is a significant dearth of prices ending in the inauspicious number 4 price clustering is significantly higher for negotiated block trades for which about 28 end with 0 multivariate analysis shows that price clustering is lower for more liquid firms but higher for firms with higher return volatility a higher price level or when the market is volatile our evidence supports the costly negotiation hypothesis our results also support the attraction hypothesis in t

on the intergenerational allocation of natural resources it is known hartwick and others that under standard assumptions a society that invests in reproducible capital the competitive rents on its current extraction of exhaustible resources will enjoy a consumption stream constant in time it is shown here that this result can be interpreted as saying that an appropriately defined stock of capital including the initial endowment of resources is being maintained intact and that consumption can be interpreted as the interest on that patrimony this seems like a useful rule of thumb for policy

changes in social welfare and sustainability theoretical issues and empirical evidence abstract we analyze the time derivative of a ramsey koopmans social welfare function r k swf as an indicator of genuine investment and current change in social welfare csw conditions when feedback or arbitrary rules are used for selecting policy variables in non optimizing economies when policy variables are selected arbitrarily their accounting prices should determine current csw in addition to the accounting prices of the economy s assets and genuine investment should be adjusted accordingly we use our theoretical framework to characterize csw conditions for non optimizing economies based on direct estimation of accounting prices we use our theoretical model to provide empirical evidence regarding the csw conditions for the greek economy

intertemporal equity and efficient allocation of resources abstract competitive paths which are efficient are shown to satisfy a terminal cost minimization condition thereby providing a continuous time counterpart to the discrete time result due to malinvaud using this result competitive paths which are equitable and efficient are shown to satisfy hartwick s investment rule which states that the value of net investment is zero at each date our result indicates that hartwick s rule can help to signal inefficiency of competitive equitable paths journal of economic literature classification numbers c61 d90 o41

reconciling the green accounts in an optimally managed economy green nationalexpenditure is equal to the linearization of the hamiltonian from theproblem of maximizing discounted social utility herein we utilize theadjoint conditions to add to the basis for viewing green nnp as an index ofsocial utility under ideal conditions and to show the equality of netnational income and expenditure the results apply even when returns toscale are increasing or decreasing unpriced net environmental benefitsshould be incorporated into comprehensive nnp in much the same way as thedisutility of labor otherwise current practices of the national accountscan be defended including the treatment of capital gains

characterizing sustainability the converse of hartwick s rule this note offers a general proof of the converse of hartwick s rule namely that in an economy with stationary instantaneous preferences and a stationary technology an efficient constant utility path is characterized by the value of net investments being zero at each point in time in a one consumption economy with two stocks a stock of a natural resource and a stock of man made capital this means that if consumption remains constant at the maximum sustainable level then the accumulation of man made capital always exactly compensates in value for the depletion of the natural resource

net national product as an indicator of sustainability net national product nnp can potentially serve several objectives among others to measure value added and to be an indicator of welfare in the aftermath of the world commission on environment and development however it also seems important to investigate whether the concept of nnp can serve as an indicator of sustainability my point of departure following hicks 1946 ch 14 is therefore to require that nnp should measure what can be consumed in the present period without reducing future consumption possibilities and in line with this to argue that the nnp should equal the maximum per capita consumption level that can be sustained if sufficiently many facilitating assumptions are made then a concept of nnp that serves as an exact indicator of sustainability can easily be constructed for instance for a closed economy with a constant population a stationary technology and with only one capital good it follows that the present does not reduce future consumption possibilities if and only if it does not decrease the stock of the single capital good hence under the assumption that the one capital good k is identical to the one consumption good x nnp defined as y x k measures the maximal sustainable consumption at time t because then x y is equivalent to k the purpose of this note is to establish that with multiple capital goods it is not in general possible to construct an exact indicator of sustainability on the

price barriers in the dow jones industrial average this study tests the popular claim that the djia s movements around key reference points affect investor sentiment and thus price behavior it is found that the djia s rise and fall is indeed restrained by support and resistance levels at multiples of 100 e g 2800 2900 3000 etc but that having broken through a 100 level the djia then moves by more than otherwise warranted a monte carlo study and comparisons with other indices confirm the significance of these findings this suggests that some agents may trade on the basis of the djia but does not necessarily suggest that the market is inefficient

value and income abstract this paper argues that income is a flow of value to society therefore an economic modeler s choice of a concept of value imposes a concept of income the argument is used to distinguish three concepts of national income 1 in a discounted utilitarian model which is usually the basis for theoretic discussions of net national income the formulation of value imposes a concept of income that is not observable and hence does not provide income statistics 2 in a perfectly competitive economy national income is in principle observable study of the competitive model provides a theoretic foundation for national accounting with extensions to distorted economies however two unobservable components of ideal income consumers surplus and capital gains are perforce neglected 3 a maximin program is the mathematical representation of another value sustaining an economy it employs a method of intertemporal valuation that does not involve discounting income is sustained value since a maximin program is not expressed for a distorted economy there is no observable indicator of whether an economy is being sustained

the welfare economic theory of green national accounts this paper takes a critical look at the literature on green national accounts the problem studied is to find a linear index of economic variables that responds to perturbations in the same direction as social well being the thesis of a large literature that net national product which is a flow is that index in closed economies is shown in some interpretations to be simply false and in others to suffer from deep estimation problems it is argued that capital depreciation using shadow prices should certainly be included in national accounts but that the right welfare index is a comprehensive measure of wealth defined as the shadow value of an economy s stock of all capital assets it is shown that comprehensive wealth is usable as a criterion for policy evaluation as well as for determining sustainable economic development

price clustering and natural resistance points in the dutch stock market a natural experiment abstract this paper focuses on the tendency of stock prices to cluster at round numbers like 10 20 30 etc and to a lesser extent 5 15 25 etc and the related effect of round number price barriers prices pass round numbers less frequently than other numbers two competing hypotheses are tested using data from the dutch stock market of the period 1990 2001 after 1 january 1999 stock prices were listed in euros while guilders were still the currency of daily life until 2002 the aspiration level hypothesis predicts that round number effects in guilders will only slowly disappear the odd price hypothesis predicts an abrupt change in round number effects after 1 january 1999 generally the results are consistent with the odd price hypothesis

sustained development of a society with a renewable resource abstract a maximin program is applied to a policy of sustaining a simple society whose population is dependent on a resource subject to logistic growth regular and non regular paths are characterized there are continua of both regular and non regular solutions the type depending on the initial conditions a non regular path involves an intermediate part in which the sustainment constraint is not effective all solutions are time consistent and pareto optimal because a problem may not be regular it is not valid to assume that sustainment implies constant utility

evaluating projects and assessing sustainable development in imperfect economies we are interested in three related questions 1 how should accounting prices be estimated 2 how should we evaluate policy change in an imperfect economy 3 how can we check whether intergenerational well being will be sustained along a projected economic programme we do not presume that the economy is convex nor do we assume that the government optimizes on behalf of its citizens we show that the same set of accounting prices should be used both for policy evaluation and for assessing whether or not intergenerational welfare along a given economic path will be sustained we also show that a comprehensive measure of wealth computed in terms of the accounting prices can be used as an index for problems 2 and 3 above the remainder of the paper is concerned with rules for estimating the accounting prices of several specific environmental natural resources transacted in a few well known economic institutions

maximin viability and sustainability the maximin criterion defines the highest utility level that can be sustained in an intergenerational equity perspective the viability approach makes it possible to characterize all the economic trajectories sustaining a given not necessarily maximal utility level in this paper we exhibit the strong links between maximin and viability we show that the value function of the maximin problem can be obtained in the viability framework and that the maximin path is a particular viable path this result allows us to extend the recommendations of the maximin approach beyond optimality to characterize the sustainability of economic trajectories which differ from the maximin path attention is especially paid to non negative net investment at maximin accounting prices which is shown to be necessary to maintain the productive capacity of the economy whether the development path is optimal or not our results provide a new theoretical ground to account for sustainability in imperfect economies based on maximin prices

sustainability of an economy relying on two reproducible assets evaluating the sustainability of a society requires a system of shadow or accounting values derived from the sustainability objective as a first step toward the derivation of such shadow values for a maximin objective this paper studies an economy composed of two reproducible assets each producing one of two consumption goods the effect of the substitutability between goods in utility is studied by postulating in turn neoclassical diminishing marginal substitutability perfect substitutability and perfect complementarity the degree of substitutability has strong effects on the maximin solution affecting the regularity or non regularity of the program and on the accounting values this has important consequences for the computation of genuine savings and the sustainability prospects of future generations

an analysis of intraday patterns in price clustering on the tokyo stock exchange abstract stock prices tend to cluster at round numbers a phenomenon observed in many markets using tick by tick transaction data this article studies price clustering on the tokyo stock exchange which is a computerized limit order market as for the intraday pattern the degree of price clustering is greatest at the market opening then it decreases during the first half hour and reaches a stable level it does not increase again near the market closing there is no clear difference in clustering between call auctions and continuous auctions

a high frequency analysis of price resolution and pricing barriers in equities on the adoption of a new currency we use ultra high frequency trade by trade data to demonstrate that equity price clustering and pricing predictability around psychologically important prices in greece switches away from drachma focused with the introduction of the euro but does not immediately switch to euro clustering the change in trader price focus around the euro introduction addresses an open debate in the clustering literature on whether the presence of clustering is a bias related to the current prices or anchoring to past prices our findings of a decline in drachma clustering but lack of switch to euro effects supports the case for clustering being a trading feature that is slow to transfer to new pricing regimes a key advantage of the ultra high frequency dataset is we are also able to demonstrate the presence of psychological pricing barriers related to each currency that are not detectable in daily data

on the welfare significance of green accounting as taught by parable abstract green nnp is a national accounting concept that subtracts off from gnp not just depreciation of capital but also depletion of environmental assets for a time autonomous technology green nnp has a rigorous welfare interpretation as an exact measure of the economy s future power to consume the present paper extends the standard framework to cover the case of labor augmenting technological progress for this special case of time dependence a powerful conceptual parable applies it is as if the conclusion from a simple minded welfare story told by the standard neoclassical one sector growth model covers a far more general situation involving any number of different types of capital any convex production possibilities set and fully optimizing behavior implications and applications are discussed

ecoviability for small scale fisheries in the context of food security constraints this paper applies a stochastic viability approach to a tropical small scale fishery offering a theoretical and empirical example of ecosystem based fishery management approach that accounts for food security the model integrates multi species multi fleet and uncertainty as well as profitability food production and demographic growth it is calibrated over the period 2006 2010 using monthly catch and effort data from the french guiana s coastal fishery involving thirteen species and four fleets using projections at the horizon 2040 different management strategies and scenarios are compared from a viability viewpoint thus accounting for biodiversity preservation fleet profitability and food security the analysis shows that under certain conditions viable options can be identified which allow fishing intensity and production to be increased to respond to food security requirements but with minimum impacts on the marine resources

on sustainability and social welfare abstract this paper proposes to define sustainability in terms of leaving it possible for future generations to sustain certain defined targets it is shown that variants of genuine savings and the ecological footprint can then serve as indicators of sustainability the link between sustainability and intergenerational welfare is examined and it is shown how to incorporate indicators of sustainability into a social welfare measure including risk in the analysis

sustainability constraints versus optimality versus intertemporal concern and axioms versus data sustainable sustained or survivable development are defined here as distinct sustainability constraints on intertemporal distribution in a context which ignores uncertainty environmental and intratemporal concerns such constraints are neither self contradictory nor redundant for they can conflict with maximizing the present value of utility optimality nor inferior since the axioms underlying optimality are ethically arbitrary and refuted by empirical psychological data axiomatic arguments may clarify but cannot resolve debates about intertemporal concerns data suggest that sustainability constraints are not respected and that intertemporal welfare functions containing a preference for sustained improvement may better reflect what bodies politic mean by sustainability

a characterization of sustainability with indicators abstract economists favor the use of criteria to characterize sustainability in practice policy makers use indicators i e measurements based on the current economic state and decisions representing given sustainability issues in this paper i introduce a criterion characterizing sustainability with indicators and thresholds acting as constraints i interpret the thresholds as minimal rights to be guaranteed to all generations and define sustainable trajectories as those satisfying all the constraints at all times the new criterion is a generalized maximin criterion the approach is applied to a simple production consumption economy with non renewable resources to derive some policy recommendations on the use of indicators to deal with sustainability i discuss the implications of such a criterion in terms of trade off between sustainability thresholds efficiency and time consistency in particular the resulting problem is time inconsistent and sustainability thresholds may be revised over time following the time inconsistent policy based on indicators with dynamic revision of the thresholds may however result in a sustained utility path and even in utility growth