Ignoring the Multi-species Aspect of Labor Supply Decisions in Spatially Explicit Bio-economic Fishery Models
This paper analyzes the bias associated with ignoring the multi-species aspect of labor supply decisions in spatially explicit bioeconomic fishery models. Recent advancements have been made to simultaneously model the biology of a marine species and the strategic behavior of harvesters over both time and space in order to more accurately predict the effect of regulatory policies on harvester effort and resource population. These models assume a nested choice structure in which the harvester first faces a dichotomous decision between fishing for the target species or not on a given day and then chooses a location to fish conditional on participation. This structure implicitly groups all non-target species options together in the first nest forcing participation-specific coefficients to be the same for all outside options, including fishing for an alternative species and staying home, two very different choices. Using a complete 15-year panel of all fishing trips made by fishermen possessing a Florida spiny lobster license, including non-lobster trips, I show that the simplifying assumption of a dichotomous choice structure in the first nest is not innocuous and that the participation probabilities can change substantially with the addition of another species as an outside alternative.
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- Sanchirico, James N. & Wilen, James E., 2001. "A Bioeconomic Model of Marine Reserve Creation," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 257-276, November.
- Smith, Martin D., 2005. "State dependence and heterogeneity in fishing location choice," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 319-340, September.
- Robert L. Hicks & Kurt E. Schnier, 2006. "Dynamic Random Utility Modeling: A Monte Carlo Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 816-835.
- Sanchirico, James N. & Wilen, James E., 2005. "Optimal spatial management of renewable resources: matching policy scope to ecosystem scale," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 23-46, July.
- Smith, Martin D. & Wilen, James E., 2003. "Economic impacts of marine reserves: the importance of spatial behavior," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 183-206, September.
- Smith, Martin D. & Zhang, Junjie & Coleman, Felicia C., 2008. "Econometric modeling of fisheries with complex life histories: Avoiding biological management failures," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 265-280, May.
- Hicks, Robert L. & Schnier, Kurt E., 2006. "AJAE Appendix: Dynamic Random Utility Modeling: A Monte Carlo Analysis," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 88(4), November.
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