18 Pages Posted: 16 Sep 2011
Date Written: 2011
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: 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
This is a Palgrave MacMillan paper. Palgrave MacMillan charges $30.00 .
File name: eej.
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.