Downward Adjustments in a Cyclical Environment: The Case of Chilean Pelagic Fisheries
Often the scale of production of many industrial fisheries in the world shows rigidity vis à vis declines in fish abundance, which on occasions has generated fishing collapse. This paper studies the two fisheries with the greatest volume of landings in Chile, and which are also characterized by strong variability in their abundance. Production-side aspects that affect the incentives to adjust towards lower fishing efforts are analyzed. To do so, production functions for industrial fleets at each fishery are estimated by resorting to panel data. Two main results are obtained. First, we confirm the empirical relevance of Translog harvest technologies. This contradicts a frequent practice in bioeconomic models, which considers harvest-inputs elasticities as being constant and independent from the scale of production. Second, a set of production-side effects are identified that weaken the incentives to adjust towards lower fishing efforts: increasing returns in the use of variable inputs, which are also strengthened by external economies associated to the aggregate searching effort for fish, and catch yields sensitive to changes in abundance, but where the strength of this effect decreases as abundance declines.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: Erasmo Escala 1835, 6500620 Santiago|
Phone: (562) 692-0265
Fax: (562) 692-0303
Web page: http://www.economia.uahurtado.cl/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Davidson, Russell & MacKinnon, James G, 1981.
"Several Tests for Model Specification in the Presence of Alternative Hypotheses,"
Econometric Society, vol. 49(3), pages 781-93, May.
- Russell Davidson & James G. MacKinnon, 1980. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Working Papers 378, Queen's University, Department of Economics.
- A. Bhargava & L. Franzini & W. Narendranathan, 2006.
"Serial Correlation and the Fixed Effects Model,"
World Scientific Book Chapters,
in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 4, pages 61-77
World Scientific Publishing Co. Pte. Ltd..
- Hausman, Jerry A. & Taylor, William E., 1981.
"Panel data and unobservable individual effects,"
Journal of Econometrics,
Elsevier, vol. 16(1), pages 155-155, May.
- repec:cor:louvrp:-12 is not listed on IDEAS
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Bjorndal, Trond, 1988. "The optimal management of North Sea Herring," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 9-29, March.
- ZELLNER, Arnold & KMENTA, Jan & DREZE, Jacques H., . "Specification and estimation of Cobb-Douglas production function models," CORE Discussion Papers RP 12, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- John Hartwick, 1979. "Free Access and the Dynamics of the Fishery," Working Papers 332, Queen's University, Department of Economics.
- Bjorndal, Trond, 1987. " Production Economics and Optimal Stock Size in a North Atlantic Fishery," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(2), pages 145-64.
- Tracy R. Lewis & Richard Schmalensee, 1979. "Non-convexity and Optimal Harvesting Strategies for Renewable Resources," Canadian Journal of Economics, Canadian Economics Association, vol. 12(4), pages 677-91, November.
- Boozer, Michael A., 1997. "Econometric Analysis of Panel Data Badi H. Baltagi Wiley, 1995," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October.
- Smith, Vernon L, 1971. "Economics of Production from Natural Resources: Reply," American Economic Review, American Economic Association, vol. 61(3), pages 488-91, June.
- Trond Bjorndal & Jon M. Conrad, 1987. "The Dynamics of an Open Access Fishery," Canadian Journal of Economics, Canadian Economics Association, vol. 20(1), pages 74-85, February.
- Beddington, John R & Watts, C M K & Wright, W D C, 1975. "Optimal Cropping of Self-Reproducible Natural Resources," Econometrica, Econometric Society, vol. 43(4), pages 789-802, July.
- Hausman, Jerry A, 1978.
"Specification Tests in Econometrics,"
Econometric Society, vol. 46(6), pages 1251-71, November.
- Anthony Scott, 1955. "The Fishery: The Objectives of Sole Ownership," Journal of Political Economy, University of Chicago Press, vol. 63, pages 116.
- Trond Bjørndal, 1989. "Production in a Schooling Fishery: The Case of the North Sea Herring Fishery," Land Economics, University of Wisconsin Press, vol. 65(1), pages 49-56.
- Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
When requesting a correction, please mention this item's handle: RePEc:ila:ilades:inv143. 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: (Marcela Perticara)
If references are entirely missing, you can add them using this form.