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Estimating heterogeneous capacity and capacity utilization in a multi-species fishery

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  • Ronald Felthoven

    ()

  • William Horrace

    ()

  • Kurt Schnier

    ()

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 socre, 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 utuilized to facilitate policy.

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Bibliographic Info

Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 32 (2009)
Issue (Month): 3 (December)
Pages: 173-189

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Handle: RePEc:kap:jproda:v:32:y:2009:i:3:p:173-189

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Web page: http://www.springerlink.com/link.asp?id=100296

Related research

Keywords: Stochastic frontier; Efficiency probability; C16; D24; Q22;

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Cited by:
  1. SolĂ­s, Daniel & del Corral, Julio & Perruso, Larry & Agar, Juan J., 2014. "Evaluating the impact of individual fishing quotas (IFQs) on the technical efficiency and composition of the US Gulf of Mexico red snapper commercial fishing fleet," Food Policy, Elsevier, vol. 46(C), pages 74-83.

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