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Estimating heterogeneous capacity and capacity utilization in a multi-species fishery

  • Ronald Felthoven

    ()

  • William Horrace

    ()

  • Kurt Schnier

    ()

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://hdl.handle.net/10.1007/s11123-009-0139-5
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Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 32 (2009)
Issue (Month): 3 (December)
Pages: 173-189

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Handle: RePEc:kap:jproda:v:32:y:2009:i:3:p:173-189
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100296

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