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Fleet dynamics and capital malleability

Author

Listed:
  • José María Da-Rocha

    () (ITAM and Universidad de Vigo)

  • Raul Prellezo

    () (AZTI)

  • Jaume Sempere

    () (El Colegio de México)

  • Luís Taboada Antelo

    () (Instituto de Investigaciones Marinas, CSIC)

Abstract

When individual stay/exit decisions depend on the opportunity cost of exiting, capital malleability is endogenously determined by the instruments used for stock rehabilitation. In a General Equilibrium framework, we characterize the transitional dynamics caused by stock rehabilitation policies. We show that a management policy based on input controls generates less exit, a less productive fleet, and overcapitalization, as input controls require a higher number of firms to achieve the same biological targets. Using data from the Multiannual Plan for the Western Mediterranean, we show that the use of input controls generates a Spanish fleet around 14 percent higher than the one that would result from a non distortionary instrument.

Suggested Citation

  • José María Da-Rocha & Raul Prellezo & Jaume Sempere & Luís Taboada Antelo, 2016. "Fleet dynamics and capital malleability," Serie documentos de trabajo del Centro de Estudios Económicos 2016-09, El Colegio de México, Centro de Estudios Económicos.
  • Handle: RePEc:emx:ceedoc:2016-09
    as

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    References listed on IDEAS

    as
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    2. José Da Rocha & María Gutiérrez, 2012. "Endogenous Fishery Management in a Stochastic Model: Why Do Fishery Agencies Use TACs Along with Fishing Periods?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(1), pages 25-59, September.
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    5. Singh, Rajesh & Weninger, Quinn & Doyle, Matthew, 2006. "Fisheries management with stock growth uncertainty and costly capital adjustment," Journal of Environmental Economics and Management, Elsevier, vol. 52(2), pages 582-599, September.
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    More about this item

    Keywords

    firm dynamics; investment; general equilibrium; fisheries;

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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