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units of current output on the present value of the enterprise" (Scott,

1955, p. 123). Dynamic MEY, therefore, occurs where marginal current

revenue is equal to marginal user cost. The determination of the catch

and effort levels necessary to achieve dynamic MEY is thus a function of

the discount rate. In general, as the discount rate rises, lower valua-

tion is put on landings in the future. Clark (1976) has shown that

dynamic MEY is bounded by static MEY levels of catch and effort and the

open access equilibrium position. More precisely, a discount rate of

zero would result in an equilibrium position identical with the open

access position while a discount rate of infinity would result in the

attainment of static MEY.

 The bioeconomic models discussed above represent what can be termed

aggregate models. Aggregate as used here refers to the treatment of the

entire industry as the unit of analysis. One limitation of this type of
 5
model is that the basic producing unit of any given fishery, the vessel,

is not explicitly included other than in its nebulous relationship with

the variable termed fishing effort. In answer to this problem, V. L.

Smith developed the first bioeconomic model which incorporated firm

behavior into the analysis (Smith, 1969). Others, most notably

Fullenbaum et al. (1971) and Anderson (1975) have all criticized and

sought to extend Smith's work. The following discussion is confined to

Smith's analysis.

 Smith's formulation centers on dealing with three key aspects of a

 fishery. These are the renewable nature of the resource stock, the

 feedback relationship between industry catch and stock growth rate and


 The term vessel and firm are used interchangeably.