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Estimating Heterogeneous Capacity and Capacity Utilization in a Multi-Species Fishery

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Author Info
Ronald G. Felthovan
William C. Horrace () (Center for Policy Research, Maxwell School, Syracuse University, Syracuse, NY 13244-1020)
Kurt E. Schnier

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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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File URL: http://www-cpr.maxwell.syr.edu/cprwps/pdf/wp86.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 86.

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Length: 36 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:max:cprwps:86

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Related research
Keywords: fishery capacity; heterogeneous production; latent class modeling;

Other versions of this item:

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative

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  1. Kurt E. Schnier & Christopher M. Anderson & William C. Horrace, 2006. "Estimating Heterogeneous Production in Fisheries," Center for Policy Research Working Papers 80, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  2. Smith, Martin D., 2005. "State dependence and heterogeneity in fishing location choice," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 319-340, September. [Downloadable!] (restricted)
  3. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor and Francis Journals, vol. 36(15), pages 1631-1641, August. [Downloadable!] (restricted)
    Other versions:
  4. Anderson, Christopher M. & Putterman, Louis, 2006. "Do non-strategic sanctions obey the law of demand? The demand for punishment in the voluntary contribution mechanism," Games and Economic Behavior, Elsevier, vol. 54(1), pages 1-24, January. [Downloadable!] (restricted)
    Other versions:
  5. Riccardo Scarpa & Mara Thiene, 2004. "Destination Choice Models for Rock Climbing in the Northeast Alps: A Latent-Class Approach Based on Intensity of Participation," Working Papers 2004.131, Fondazione Eni Enrico Mattei. [Downloadable!]
  6. Weninger, Quinn & Waters, James R., 2003. "Economic benefits of management reform in the northern Gulf of Mexico reef fish fishery," Staff General Research Papers 10828, Iowa State University, Department of Economics.
    Other versions:
  7. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  8. Horrace, William C., 2005. "On ranking and selection from independent truncated normal distributions," Journal of Econometrics, Elsevier, vol. 126(2), pages 335-354, June. [Downloadable!] (restricted)
    Other versions:
  9. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239. [Downloadable!] (restricted)
  10. James E. Kirkley & Dale Squires & Mohammad Ferdous Alam & Haji Omar Ishak, 2003. "Excess Capacity and Asymmetric Information in Developing Country Fisheries: The Malaysian Purse Seine Fishery," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(3), pages 647-662, 08. [Downloadable!] (restricted)
  11. Schnier, Kurt E. & Anderson, Christopher M., 2006. "Decision making in patchy resource environments: Spatial misperception of bioeconomic models," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 234-254, October. [Downloadable!] (restricted)
  12. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July. [Downloadable!] (restricted)
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  14. Mistiaen, Johan A & Strand, Ivar E, 2000. " Location Choice of Commercial Fishermen with Heterogeneous Risk Preferences," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(5), pages 1184-90. [Downloadable!] (restricted)
  15. Reid, Christopher & Squires, Dale & Jeon, Yongil & Rodwell, Len & Clarke, Raymond, 2003. "An analysis of fishing capacity in the western and central Pacific Ocean tuna fishery and management implications," Marine Policy, Elsevier, vol. 27(6), pages 449-469, November. [Downloadable!] (restricted)
  16. Fare, Rolf & Grosskopf, Shawna & Kokkelenberg, Edward C, 1989. "Measuring Plant Capacity, Utilization and Technical Change: A Nonparametric Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 655-66, August. [Downloadable!] (restricted)
  17. Tom Kompas & Tuong Nhu Che, 2003. "Efficiency Gains and Cost Reductions from Individual Transferable Quotas: A Stochastic Cost Frontier for," International and Development Economics Working Papers idec03-6, International and Development Economics. [Downloadable!]
  18. Guyader, Olivier & Daures, Fabienne & Fifas, Spyros & Ifremer, 2004. "A Bioeconomic Analysis Of The Impact Of Decommissioning Programs: Application To A Limited-Entry French Scallop Fishery," Marine Resource Economics, Marine Resources Foundation, vol. 19(2). [Downloadable!]
  19. Luis Orea & Subal C. Kumbhakar, 2004. "Efficiency measurement using a latent class stochastic frontier model," Empirical Economics, Springer, vol. 29(1), pages 169-183, January. [Downloadable!] (restricted)
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