Estimating Heterogeneous Capacity and Capacity Utilization in a Multi-Species Fishery
AbstractWe 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 InfoPaper provided by Center for Policy Research, Maxwell School, Syracuse University in its series Center for Policy Research Working Papers with number 86.
Length: 36 pages
Date of creation: Nov 2006
Date of revision:
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fishery capacity; heterogeneous production; latent class modeling;
Other versions of this item:
- Ronald Felthoven & William Horrace & Kurt Schnier, 2009. "Estimating heterogeneous capacity and capacity utilization in a multi-species fishery," Journal of Productivity Analysis, Springer, vol. 32(3), pages 173-189, December.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-12-04 (Agricultural Economics)
- NEP-ALL-2006-12-04 (All new papers)
- NEP-EFF-2006-12-04 (Efficiency & Productivity)
- NEP-ENV-2006-12-04 (Environmental Economics)
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