An Inverse Demand System for New England Groundfish: Welfare Analysis of the Transition to Catch Share Management
In 2010, the Northeast groundfish fishery transitioned from an effort-control system (Days-at-Sea) to an output-control system (catch shares). Simultaneously, a large decrease in aggregate catch was imposed in order to achieve biological objectives. This research examines the welfare effects of the transition to catch-share management by combining an inverse demand model for groundfish with a simulation based model of supply. The Generalized Differential Inverse Demand System is estimated for groundfish and imports using monthly data from 1994-2011 using a Generalized Method of Moments estimator. The estimated parameters are combined with simulated landings derived from a counterfactual policy scenario had ef- fort controls been retained instead of the catch share system. The simultaneous management change to catch shares and reduction in aggregate catch reduced consumer welfare by approximately $11M. A counterfactual policy in which the Days-at-Sea system was adjusted to meet the catch reductions would have reduced consumer welfare by approximately $37M; this finding is robust to instrument choice in the demand model. Because the 2010 fishing regulations and the counterfactual regulations were designed with the same conservation goals, the difference, approximately $26M, can be attributed to the change in management institution. Finally, reversion to the Days-at-Sea regulatory structure would reduce consumer welfare by approximately $25M from the current (2010) levels.
|Date of creation:||2012|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
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.:
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
- Blanciforti, Laura & Green, Richard, 1983. "An Almost Ideal Demand System Incorporating Habits: An Analysis of Expenditures on Food and Aggregate Commodity Groups," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 511-515, August.
- Barten, Anton P, 1993. "Consumer Allocation Models: Choice of Functional Form," Empirical Economics, Springer, vol. 18(1), pages 129-158.
- Moschini, GianCarlo & Vissa, A., 1992. "Linear Inverse Demand System, A," Staff General Research Papers Archive 11250, Iowa State University, Department of Economics.
- Bishop, Richard C. & Holt, Matthew T. & Hilmer, Christiana E., 2004.
"Bootstrapping Your Fish Or Fishing For Bootstraps?: Precision Of Welfare Loss Estimates From A Globally Concave Inverse Demand Model Of Commercial Fish Landings In The U.S. Great Lakes,"
2004 Annual meeting, August 1-4, Denver, CO
20272, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Christiana E. Hilmer & Matthew T. Holt & Richard C. Bishop, 2010. "Bootstrapping Your Fish or Fishing for Bootstraps? Precision of Welfare Loss Estimates from a Globally Concave Inverse Demand Model of Commercial Fish Landings in the U.S. Great Lakes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(1), pages 98-112.
- Martin S. Eichenbaum & Lars Peter Hansen & Kenneth J. Singleton, 1988.
"A Time Series Analysis of Representative Agent Models of Consumption and Leisure Choice Under Uncertainty,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 103(1), pages 51-78.
- Martin S. Eichenbaum & Lars Peter Hansen & Kenneth J. Singleton, 1986. "A Time Series Analysis of Representative Agent Models of Consumption andLeisure Choice Under Uncertainty," NBER Working Papers 1981, National Bureau of Economic Research, Inc.
- James Eales & Catherine Durham & Cathy R. Wessells, 1997. "Generalized Models of Japanese Demand for Fish," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1153-1163.
- Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
- Keller, W.J. & Van Driel, J., 1985. "Differential consumer demand systems," European Economic Review, Elsevier, vol. 27(3), pages 375-390.
- Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
- David Roodman, 2007.
"A Note on the Theme of Too Many Instruments,"
125, Center for Global Development.
- Robert H. Beach & Matthew T. Holt, 2001.
"Incorporating Quadratic Scale Curves in Inverse Demand Systems,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 83(1), pages 230-245.
- Beach, Robert H. & Holt, Matthew T., 1999. "Incorporating Quadratic Scale Curves In Inverse Demand Systems," 1999 Annual meeting, August 8-11, Nashville, TN 21579, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Brown, Mark G & Lee, Jonq-Ying & Seale, James L, Jr, 1995. "A Family of Inverse Demand Systems and Choice of Functional Form," Empirical Economics, Springer, vol. 20(3), pages 519-530.
- Moschini, GianCarlo & Vissa, Anuradha, 1992. "A Linear Inverse Demand System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(02), December.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea12:123879. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.