IDEAS home Printed from https://ideas.repec.org/p/ila/ilades/inv143.html
   My bibliography  Save this paper

Downward Adjustments in a Cyclical Environment: The Case of Chilean Pelagic Fisheries

Author

Abstract

Often the scale of production of many industrial fisheries in the world shows rigidity vis à vis declines in fish abundance, which on occasions has generated fishing collapse. This paper studies the two fisheries with the greatest volume of landings in Chile, and which are also characterized by strong variability in their abundance. Production-side aspects that affect the incentives to adjust towards lower fishing efforts are analyzed. To do so, production functions for industrial fleets at each fishery are estimated by resorting to panel data. Two main results are obtained. First, we confirm the empirical relevance of Translog harvest technologies. This contradicts a frequent practice in bioeconomic models, which considers harvest-inputs elasticities as being constant and independent from the scale of production. Second, a set of production-side effects are identified that weaken the incentives to adjust towards lower fishing efforts: increasing returns in the use of variable inputs, which are also strengthened by external economies associated to the aggregate searching effort for fish, and catch yields sensitive to changes in abundance, but where the strength of this effect decreases as abundance declines.

Suggested Citation

  • Julio Peña-Torres & Michael Basch & Sebastian Vergara, "undated". "Downward Adjustments in a Cyclical Environment: The Case of Chilean Pelagic Fisheries," ILADES-UAH Working Papers inv143, Universidad Alberto Hurtado/School of Economics and Business.
    • Handle: RePEc:ila:ilades:inv143
    as

    Download full text from publisher

    File URL: http://fen.uahurtado.cl/wp-content/uploads/2010/07/inv143.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:cor:louvrp:-12 is not listed on IDEAS
    2. Davidson, Russell & MacKinnon, James G, 1981. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Econometrica, Econometric Society, vol. 49(3), pages 781-793, May.
    3. Tracy R. Lewis & Richard Schmalensee, 1979. "Non-convexity and Optimal Harvesting Strategies for Renewable Resources," Canadian Journal of Economics, Canadian Economics Association, vol. 12(4), pages 677-691, November.
    4. A. Bhargava & L. Franzini & W. Narendranathan, 2006. "Serial Correlation and the Fixed Effects Model," World Scientific Book Chapters, in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 4, pages 61-77, World Scientific Publishing Co. Pte. Ltd..
    5. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Trond Bjørndal, 1989. "Production in a Schooling Fishery: The Case of the North Sea Herring Fishery," Land Economics, University of Wisconsin Press, vol. 65(1), pages 49-56.
    8. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
    9. Bjorndal, Trond, 1987. " Production Economics and Optimal Stock Size in a North Atlantic Fishery," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(2), pages 145-164.
    10. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    11. Beddington, John R & Watts, C M K & Wright, W D C, 1975. "Optimal Cropping of Self-Reproducible Natural Resources," Econometrica, Econometric Society, vol. 43(4), pages 789-802, July.
    12. Trond Bjorndal & Jon M. Conrad, 1987. "The Dynamics of an Open Access Fishery," Canadian Journal of Economics, Canadian Economics Association, vol. 20(1), pages 74-85, February.
    13. Bjorndal, Trond, 1988. "The optimal management of North Sea Herring," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 9-29, March.
    14. Boozer, Michael A., 1997. "Econometric Analysis of Panel DataBadi H. Baltagi Wiley, 1995," Econometric Theory, Cambridge University Press, vol. 13(5), pages 747-754, October.
    15. Smith, Vernon L, 1971. "Economics of Production from Natural Resources: Reply," American Economic Review, American Economic Association, vol. 61(3), pages 488-491, June.
    16. John Hartwick, 1979. "Free Access and the Dynamics of the Fishery," Working Paper 332, Economics Department, Queen's University.
    17. Anthony Scott, 1955. "The Fishery: The Objectives of Sole Ownership," Journal of Political Economy, University of Chicago Press, vol. 63, pages 116-116.
    18. ZELLNER, Arnold & KMENTA, Jan & DREZE, Jacques H., 1966. "Specification and estimation of Cobb-Douglas production function models," LIDAM Reprints CORE 12, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manuel Coelho & Jose Antonio Filipe & Manuel Alberto M. Ferreira & Rui Junqueira Lopes, 2013. "Extinction Revisited: “Allee Effect” and Irreversibility in “Schooling” Fisheries," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 3(1), pages 405-405.
    2. Russell Davidson & Victoria Zinde‐Walsh, 2017. "Advances in specification testing," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1595-1631, December.
    3. Adrian C. Darnell, 1994. "A Dictionary Of Econometrics," Books, Edward Elgar Publishing, number 118.
    4. Julio Peña Torres & Claudio Agostini & Sebastián Vergara, 2005. "'El Niño' Effects and Biomass Endogeneity in a Harvest Function: The Chilean Jack Mackerel Fishery," ILADES-UAH Working Papers inv160, Universidad Alberto Hurtado/School of Economics and Business.
    5. MacKinnon, James G, 1992. "Model Specification Tests and Artificial Regressions," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 102-146, March.
    6. Vânia G. Silva & Esmeralda A. Ramalho & Carlos R. Vieira, 2017. "The Use of Cheques in the European Union: A Cross-Country Analysis," Open Economies Review, Springer, vol. 28(3), pages 581-602, July.
    7. Jan Ámos Víšek, 2015. "Estimating the Model with Fixed and Random Effects by a Robust Method," Methodology and Computing in Applied Probability, Springer, vol. 17(4), pages 999-1014, December.
    8. Pitlik, Hans & Schmid, Gunther & Strotmann, Harald, 2001. "Bargaining Power of Smaller States in Germany's Landerfinanzausgleich 1979-90," Public Choice, Springer, vol. 109(1-2), pages 183-201, October.
    9. Angel De la Fuente, 2010. "Infrastructures and productivity: an updated survey," Working Papers 1018, BBVA Bank, Economic Research Department.
    10. Entorf, Horst & Winkler, Peter, 2001. "The economics of crime: investigating the drugs-crime channel: empirical evidence from panel data of the German states," ZEW Discussion Papers 01-37, ZEW - Leibniz Centre for European Economic Research.
    11. Kristen Keith & Paula Malone, 2005. "Housework and the Wages of Young, Middle‐Aged, and Older Workers," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 224-241, April.
    12. Ikerne del Valle & Inmaculada Astorkiza & Kepa Astorkiza, 2001. "Is the Current Regulation of the VIII Division European Anchovy Optimal?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(1), pages 53-72, May.
    13. Jeffrey M. Woodridge, 1988. "A Unified Approach to Robust, Regression-Based Specification Tests," Working papers 480, Massachusetts Institute of Technology (MIT), Department of Economics.
    14. José Ramón Ruiz Tamarit & Manuel Sánchez Moreno, 2006. "Optimal Regulation And Growth In A Natural-Resource-Based Economy," Working Papers. Serie AD 2006-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    15. Öztürk, Gamze & Yetkiner, Hakan & Özden, Elif, 2020. "Macroeconomic determinants of antidepressant use," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1394-1407.
    16. Ella Oyono, Dieudonné, 2006. "Effets réels des régimes de change dans les pays en développement," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(3), pages 319-340, septembre.
    17. repec:jss:jstsof:27:i02 is not listed on IDEAS
    18. Nikolaev, V. & van Lent, L.A.G.M., 2005. "The Endogeneity Bias in the Relation Between Cost-of-Debt Capital and Corporate Disclosure Policy," Discussion Paper 2005-67, Tilburg University, Center for Economic Research.
    19. Barabas, György & Kitlinski, Tobias & Schmidt, Christoph M. & Schmidt, Torsten & Siemers, Lars-H. & Brilon, Werner, 2010. "Verkehrsinfrastrukturinvestitionen: Wachstumsaspekte im Rahmen einer gestaltenden Finanzpolitik. Endbericht - Januar 2010. Forschungsprojekt im Auftrag des Bundesministeriums der Finanzen. Projektnumm," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72601.
    20. Manuel Arellano & Olympia Bover, 1990. "La econometría de datos de panel," Investigaciones Economicas, Fundación SEPI, vol. 14(1), pages 3-45, January.
    21. Croissant, Yves & Millo, Giovanni, 2008. "Panel Data Econometrics in R: The plm Package," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i02).

    More about this item

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction

    NEP fields

    This paper has been announced in the following NEP Reports:

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Socio-economics of Fisheries and Aquaculture

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ila:ilades:inv143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mauricio Tejada (email available below). General contact details of provider: https://edirc.repec.org/data/deilacl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.