Information and Spillovers from Targeting Policy in Peru's Anchoveta Fishery
99 Pages Posted: 22 Mar 2021
Date Written: March 10, 2021
This paper establishes that a targeted policy backfires because it reveals information about non-targeted units. In the world's largest fishery, the regulator attempts to reduce the harvesting of juvenile fish by temporarily closing areas where the share of juvenile catch is high. By combining administrative microdata with biologically richer data from fishing firms, I isolate variation in closures that is due to the regulator's lower resolution data. I estimate substantial temporal and spatial spillovers from closures. Closures increase total juvenile catch by 50% because closure announcements implicitly signal that fishing before, just outside, and after closures is high productivity.
Keywords: information spillovers, targeted policies, place-based policies, fisheries, Peru
JEL Classification: Q28, O13, Q56, D83, Q22
Suggested Citation: Suggested Citation