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Estimating Heterogeneous Production in Fisheries

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Author Info
Kurt E. Schnier () (University of Rhode Island, Department of Environmental and Natural Resource Economics, Coastal Institute, 1 Greenhouse Road, Suite 212, Kingston, Rhode Island 02881)
Christopher M. Anderson (Department of Environmental and Natural Resource Economics, University of Rhode Island)
William C. Horrace () (Center for Policy Research, Maxwell School, Syracuse University, Syracuse NY 13244-1020)

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Abstract

Stochastic production frontier models are used extensively in the agricultural and resource economics literature to estimate production functions and technical efficiency, as well as to guide policy. Traditionally these models assume that each agent's production can be specified as a representative, homogeneous function. This paper proposes the synthesis of a latent class regression and an aagricultural production frontier model to estimate technical efficiency while allowing for the possibility of production heterogeneity. We use this model to estimate a latent class production function and efficiency measures for vessels in the Northeast Atlantic herring fishery. Our results suggest that traditional measures of technical efficiency may be incorrect, if heterogeneity of agricultural production exists.

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File URL: http://www-cpr.maxwell.syr.edu/cprwps/pdf/wp80.pdf
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Publisher Info
Paper provided by Center for Policy Research, Maxwell School, Syracuse University in its series Center for Policy Research Working Papers with number 80.

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Length: 39 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:max:cprwps:80

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Related research
Keywords: latent class regression; EC algorithm; stochastic production frontier; technical efficiency;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-

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  1. Ronald G. Felthovan & William C. Horrace & Kurt E. Schnier, 2006. "Estimating Heterogeneous Capacity and Capacity Utilization in a Multi-Species Fishery," Center for Policy Research Working Papers 86, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
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  2. Felthoven, Ronald G. & Horrace, William C. & Schnier, Kurt E., 2006. "Estimating Heterogeneous Primal Capacity and Capacity Utilization Measures in a Multi-Species Fishery," 2006 Annual meeting, July 23-26, Long Beach, CA 21276, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Alfonso Flores-Lagunes & William C. Horrace & Kurt E. Schnier, 2007. "Identifying technically efficient fishing vessels: a non-empty, minimal subset approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(4), pages 729-745. [Downloadable!]
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This page was last updated on 2009-11-27.

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