Trip-Level Analysis of Efficiency Changes in Oregon’s Deepwater Trawl Fishery
AbstractIn 2003, an industry-financed, government-administered buyback of trawl fishing permits and vessels took place on the US West Coast, resulting in the retirement of about one-third of the limited-entry trawl fleet. The lack of cost data in this fishery precludes an analysis of how the buyback has affected profitability, but changes in technical efficiency can provide some insight into the program’s effects. This paper, the first of a planned series of analyses of the buyback’s effect on technical efficiency in the trawl fleet, applies stochastic frontier analysis to assess whether technical efficiency changed perceptibly after 2003. We adopt a hierarchical modeling approach estimated with Markov Chain Monte Carlo methods, and present results from both Cobb-Douglas and translog specifications. The analysis is limited to 13 boats active in Oregon’s deepwater ‘DTS’ fishery, which targets dover sole, thornyheads, and sablefish. The results suggest that the buyback has had little impact on trip-level technical efficiency in the study fishery. However, departures from the frontier are markedly bi-modal, indicating that a mixed-density approach to estimation may be more appropriate.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2007.86.
Date of creation: Sep 2007
Date of revision:
Fishery Buyback; Technical Efficiency; Stochastic Production Frontier; Bayesian Inference; Markov Chain Monte Carlo;
Find related papers by JEL classification:
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
- L5 - Industrial Organization - - Regulation and Industrial Policy
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-10-20 (Agricultural Economics)
- NEP-ALL-2007-10-20 (All new papers)
- NEP-EFF-2007-10-20 (Efficiency & Productivity)
- NEP-ENV-2007-10-20 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- O'Donnell, Christopher J. & Coelli, Timothy J., 2005.
"A Bayesian approach to imposing curvature on distance functions,"
Journal of Econometrics,
Elsevier, vol. 126(2), pages 493-523, June.
- Tim J. Coelli & Chris O'Donnell, 2003. "A Bayesian Approach To Imposing Curvature On Distance Functions," CEPA Working Papers Series WP032003, School of Economics, University of Queensland, Australia.
- Luis R. Murillo-Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, 02.
- Griffiths, William E. & O'Donnell, Christopher J. & Cruz, Agustina Tan, 1999.
"Imposing Regularity Conditions On A System Of Cost And Factor Share Equations,"
12925, University of New England, School of Economics.
- Griffiths, William E. & O'Donnell, Christopher J. & Cruz, Agustina Tan, 2000. "Imposing regularity conditions on a system of cost and factor share equations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
If references are entirely missing, you can add them using this form.