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Fiscal Policies for Italy’s Fishing Industry: Theoretical and Empirical Aspects


  • Massimo Del Gatto


The solution to the problem of over-fishing offered by catch-effort models is a reduction in capital invested. Fishery policy, both European and Italian, is constructed entirely on the basis of this idea. Applying the same theoretical apparatus, we show that fiscal policies can be used in order to achieve the same goal. Furthermore, evaluation of the tax burden for Italian sea-fishing firms raises various points on the basis of which present fishery policy is found wanting with respect to its own theoretical apparatus (catch-effort models). Subsidies for definitive withdrawal and equipment renewal are opportune but economic problems regarding the efficiency of equipment will emerge if fiscal pressure is too high: firms will tend to withdraw from the market rather than renew their equipment. Since the Italian fishing sector comes under strong fiscal pressure we conclude that taxes should be effectively reduced and co-ordination with structural aid improved.

Suggested Citation

  • Massimo Del Gatto, 2002. "Fiscal Policies for Italy’s Fishing Industry: Theoretical and Empirical Aspects," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, May.
  • Handle: RePEc:rar:journl:0153

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    References listed on IDEAS

    1. Matthiasson, T., 1995. "Why Fishing Fleets Tend to be "Too Big"?," Memorandum 20/1995, Oslo University, Department of Economics.
    2. Carol Corrado & Joe Mattey, 1997. "Capacity Utilization," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 151-167, Winter.
    3. Rögnvaldur Hannesson, 1994. "Optimum Fishing Capacity and International Transfer of Excess Allowable Catches," Land Economics, University of Wisconsin Press, vol. 70(3), pages 330-344.
    4. Segerson, Kathleen & Squires, Dale, 1995. "Measurement of Capacity Utilization for Revenue-Maximizing Firms," Bulletin of Economic Research, Wiley Blackwell, vol. 47(1), pages 77-84, January.
    5. Homans, Frances R. & Wilen, James E., 1997. "A Model of Regulated Open Access Resource Use," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 1-21, January.
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    More about this item


    Evaluation; Fiscal Charging; Fisheries; Incentives; Subsidies;

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery


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