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|
|Date of revision:|
|Contact details of provider:|| Postal: |
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.:
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- 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.
- 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).
- Keller, W.J. & Van Driel, J., 1985. "Differential consumer demand systems," European Economic Review, Elsevier, vol. 27(3), pages 375-390.
- Eichenbaum, Martin S & Hansen, Lars Peter & Singleton, Kenneth J, 1988.
"A Time Series Analysis of Representative Agent Models of Consumption and Leisure Choice under Uncertainty,"
The Quarterly Journal of Economics,
MIT Press, vol. 103(1), pages 51-78, February.
- 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.
- 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).
- Moschini, GianCarlo & Vissa, A., 1992. "Linear Inverse Demand System, A," Staff General Research Papers 11250, Iowa State University, Department of Economics.
- David Roodman, 2009.
"A Note on the Theme of Too Many Instruments,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 71(1), pages 135-158, 02.
- 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 519-30.
- 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 715-19, November.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Moschini, GianCarlo & Vissa, Anuradha, 1992. "A Linear Inverse Demand System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(02), December.
- 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.
- Barten, Anton P, 1993. "Consumer Allocation Models: Choice of Functional Form," Empirical Economics, Springer, vol. 18(1), pages 129-58.
- 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 511-15, August.
- Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
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 references are entirely missing, you can add them using this form.