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The model is part of the answer to a request from the Regional Development Fund to Tore Kindt and the author to work out development recommendations.
We thus consider explicitly systematic seasonal variations in quantities of fish brought ashore. But we disregard almost completely variations in, say, weekly quantities within each season, as we shall assume that all production within each season shall proceed at constant intensity. We also disregard changes from year to year.
Maximum use of storage capacity (p Ky it ) is constant within each period (but changes discontinuously from period to period) for eachi, K, andt. Stocks of intermediary products in the interior of period t will change at a constant rate fromq K i t−1 toq K it .
We shall, by definition, setq K i0 equal toq K i3 : we assume that the values of the variables do not change from year to year.
cjt is estimated as the hours a machine will work in period t if it works 90 hours a week. This is a problematic bound. On one hand, it is clear that a machine may work more than 90 hours a week. On the other hand, the assumption that the fish is brought ashore with a constant intensity all through a period is unrealistic. In extreme cases all the fish brought ashore during a period might be brought ashore during, say, the first half of the period. In this case the machines might not suffice to handle the fish brought ashore during that period, even if there were more than enough machinery as an average over the period. A more satisfactory treatment of these problems would require the introduction of the probability distribution of the incoming supply of fish.
This is a serious limitation. We defend it as follows: Since the total value of investments is given as a constant, the yearly depreciation would also be a constant when the rate of depreciation is assumed the same for all categories of capital to be included. But this assumption is not very acceptable. So as possibly to improve on it, running costs for machinery are included for the classes of capital for which we assume the rate of depreciation to be the highest. For various reasons, however, this is unsatisfactory. The no depreciation assumption should certainly be among the first to be improved on in case further work is done on this model.
There may also be other assumptions that would lead to the same formulae—the assumptions to be given are the ones we think are the most reasonable ones.
It should be noted that only for very few products, and not even for labor and capital directly, does the model give figures that can be entered in a nation-wide accounting system.
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Serck-Hanssen, J. A programming model for a fishing region in Northern Norway. Papers of the Regional Science Association 12, 107–118 (1964). https://doi.org/10.1007/BF01941244
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DOI: https://doi.org/10.1007/BF01941244