Estimating Heterogeneous Capacity and Capacity Utilization in a Multi-Species Fishery
Center for Policy Research Working Paper No. 86
36 Pages Posted: 20 Apr 2011
Date Written: November 1, 2006
Abstract
We use a stochastic production frontier model to investigate the presence of heterogeneous production and its impact on fleet capacity and capacity utilization in a multi-species fishery. Furthermore, we propose a new fleet capacity estimate that incorporates complete information on the stochastic differences between each vessel-specific technical efficiency distribution. Results indicate that ignoring heterogeneity in production technologies within a multi-species fishery, as well as the complete distribution of a vessel’s technical efficiency score, may yield erroneous fleet-wide production profiles and estimates of capacity. Furthermore, our new estimate of capacity enables out-of-sample production predictions predicated on either homogeneity or heterogeneity modeling which may be utilized to facilitate policy.
Keywords: fishery capacity, heterogeneous production, latent class modeling
JEL Classification: C23, D24, N50
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Identifying Technically Efficient Fishing Vessels: A Non-Empty, Minimal Subset Approach
By William C. Horrace, Kurt E. Schnier, ...
-
Efficiencies and Unobserved Heterogeneity in Turkish Banking: 1990-2000
By Mahmoud El-gamal and Hulusi Inanoglu
-
Estimating Heterogeneous Production in Fisheries
By Kurt E. Schnier, Christopher M. Anderson, ...
-
Ranking Inequality: Applications of Multivariate Subset Selection
By William C. Horrace, Joseph Marchand, ...
-
The Value of Statistical Life: Pursuing the Deadliest Catch
By Kurt E. Schnier, William C. Horrace, ...
-
Efficiency in the Japanese Trust Banking Industry: A Stochastic Distance Function Approach
By Nobuyoshi Yamori and Kozo Harimaya