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Technical Efficiency of the Danish Trawl fleet: Are the Industrial Vessels Better than Others?

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Author Info
Niels Vestergaard () (Department of Environmental and Business Economics, University of Southern Denmark)
Dale Squires () (U.S. National Institute of Marine Science, Southwest Fisheries Science Center)
Frank Jensen () (Institute of Local Government Studies, Denmark)
Jesper L. Andersen () (Danish Research Institute of Food Economics, Fisheries Economics and Management Division)

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Abstract

Technical efficiency in the Danish trawl fishery in the North Sea is estimated for 1997 and 1998 by a stochastic production frontier model. This model allows noise when the frontier and the technical efficiency is found, which for fisheries is a reasonable assumption. The results show that the production frontier can be modelled by a translog function without time effects and a technical ineffi-ciency function. The type of fishery (industrial or consumption), size of vessel (greater or lesser than 60 GRT) and year give a good explanation for the ineffi-ciency in the fleet. The average technical efficiency is estimated to be 0.82. On average, industrial vessels have a higher technical efficiency than human con-sumption vessels, and smaller vessels have higher technical efficiency than lar-ger vessels. In sum, the analysis reveals that vessel larger than 60 GRT and fishing industrial species are the most efficient.

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Publisher Info
Paper provided by University of Southern Denmark, Department of Environmental and Business Economics in its series Working Papers with number 32/02.

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Length: 30 pages
Date of creation: Jun 2002
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Handle: RePEc:sdk:wpaper:32

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Related research
Keywords: Technical efficiency; stochastic production frontier; Danish trawl fishery;

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References listed on IDEAS
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.:
  1. Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Journal of Law & Economics, University of Chicago Press, vol. 43(2), pages 679-713, October.
    Other versions:
  2. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September. [Downloadable!] (restricted)
  3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August. [Downloadable!] (restricted)
  4. Kumbhakar, Subal C., 1987. "The specification of technical and allocative inefficiency in stochastic production and profit frontiers," Journal of Econometrics, Elsevier, vol. 34(3), pages 335-348, March. [Downloadable!] (restricted)
  5. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June. [Downloadable!] (restricted)
  6. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May. [Downloadable!] (restricted)
  7. Campbell, H. F. & Hand, A. J., 1998. "Joint ventures and technology transfer: the Solomon Islands pole-and-line fishery," Journal of Development Economics, Elsevier, vol. 57(2), pages 421-442. [Downloadable!] (restricted)
  8. 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)
  9. Reifschneider, David & Stevenson, Rodney, 1991. "Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 715-23, August. [Downloadable!] (restricted)
  10. 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)
  11. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
  12. Kim, H Youn, 1992. "The Translog Production Function and Variable Returns to Scale," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 546-52, August. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Birgit Nahrstedt & Henning P. Jørgensen & Ayoe Hoff, 2002. "Estimation of Production Functions on Fishery: A Danish Survey," Working Papers 33/02, University of Southern Denmark, Department of Environmental and Business Economics. [Downloadable!]
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