Measuring Fishing Capacity When Some Outputs are Undesirable

18 Pages Posted: 16 Sep 2011  

Rolf Färe

Oregon State University - Department of Economics

James Kirkley

affiliation not provided to SSRN

John B. Walden

affiliation not provided to SSRN

Date Written: 2011

Abstract

We estimate capacity when firms produce both desirable and undesirable outputs using a directional distance function model, and a hyperbolic model. We impose different assumptions regarding disposability of undesirable outputs in both models, and vary the direction of vectors in the directional distance function model. We then apply the methods to data from fishing vessels operating in the northwest Atlantic Ocean during a 3-year period. Results differ from previous studies that examined technical efficiency for similar vessels and show that it is difficult for fishing vessels to reduce undesirable outputs without reducing desirable outputs.

Suggested Citation

Färe, Rolf and Kirkley, James and Walden, John B., Measuring Fishing Capacity When Some Outputs are Undesirable (2011). Eastern Economic Journal, Vol. 37, Issue 4, pp. 553-570, 2011. Available at SSRN: https://ssrn.com/abstract=1928474 or http://dx.doi.org/10.1057/eej.2010.7

Rolf Färe (Contact Author)

Oregon State University - Department of Economics ( email )

303 Ballard Extension Hall
Corvallis, OR 97331
United States
541-737-8184 (Phone)
541-737-5917 (Fax)

James Kirkley

affiliation not provided to SSRN

No Address Available

John B. Walden

affiliation not provided to SSRN

No Address Available

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