Estimation of a Generalized Fishery Model: A Two-Stage Approach

34 Pages Posted: 18 Apr 2007 Last revised: 18 Mar 2014

See all articles by Junjie Zhang

Junjie Zhang

Duke Kunshan University; Duke University

Martin D. Smith

Duke University - Nicholas School of the Environment

Date Written: November 8, 2009

Abstract

U.S. federal law calls for an end to overfishing, but measuring overfishing requires knowledge of bioeconomic parameters. Using micro-level economic data from the commercial fishery, this paper proposes a two-stage approach to estimate these parameters for a generalized fishery model. In the first stage, a fishery production function is consistently estimated by a within-period estimator treating the latent stock as a fixed effect. The estimated stock is then substituted into an equation of fish stock dynamics to estimate all other biological parameters. The bootstrap approach is used to correct the standard errors in the two-stage model. This method is applied to the reef-fish fishery in the northeastern Gulf of Mexico. The traditional method, which uses catch-per-unit-effort (CPUE) as a stock proxy, significantly overstates the optimal harvest level.

Keywords: fishery management, latent stock, panel data, two-stage estimation

JEL Classification: Q22, C33

Suggested Citation

Zhang, Junjie and Smith, Martin D., Estimation of a Generalized Fishery Model: A Two-Stage Approach (November 8, 2009). Review of Economics and Statistics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=980756 or http://dx.doi.org/10.2139/ssrn.980756

Junjie Zhang (Contact Author)

Duke Kunshan University ( email )

No. 8 Duke Avenue
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

Duke University ( email )

No. 8 Duke Avenue
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

Martin D. Smith

Duke University - Nicholas School of the Environment ( email )

Box 90328
A122 LSRC
Durham, NC 27708-0328
United States
919-613-8028 (Phone)
919-684-8741 (Fax)

HOME PAGE: http://fds.duke.edu/db/Nicholas/esp/faculty/marsmith

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