IDEAS home Printed from https://ideas.repec.org/p/irf/wpaper/017.html
   My bibliography  Save this paper

Modelling The Technology Of Commercial Fishing Vessel In Italy: A Cost Function Approach

Author

Listed:
  • Gianluigi Coppola

    (Dipartimento di Scienze Economiche e Statistiche - University of Salerno (ITALY))

  • Monica Gambino

    (NISEA - FISHERIES AND AQUACULTURE RESEARCH ORGANIZATION)

  • Alfonso Pellecchia
  • Dario Pinello

    (NISEA - FISHERIES AND AQUACULTURE RESEARCH ORGANIZATION)

  • Evelina Carmen Sabatella

    (NISEA - FISHERIES AND AQUACULTURE RESEARCH ORGANIZATION)

Abstract

The Italian fleet is characterized by a low geographical concentrations and by strong differences in specialization, productivity and profitability between maritime regions and fleet segments. In this paper we try to test the differences in technology and in the level of economy of scale existing among the Italian fleet segments on the basis of the estimation of a translog Cost function (among others Pascoe, 2007; Eggert and Tveteras, 2007). It permits to measure the elasticity of substitution among factors, to assess if it is constant or not and also to estimate the level of economies of scale. The model was applied on a dataset of around 900 vessels; these vessels are part of the sample used within the Italian National Program under the Data Collection Framework to estimate the economic variables of the Italian fishing fleets. The sampling is of a stratified nature in that the fishing vessels of the fleet are divided into homogenous groups (fleet segment and maritime regions) Independent samples are taken from each of these clusters through a Probability Proportional to Size (PPS). The estimate of the value of capital invested in the sector derives from the application of the PIM methodology (Perpetual Inventory Method). The model was applied to the following two segments: trawlers and artisanal vessels. The results of the study mainly attest the existence of economy of scale in both 2 fleet segments. Language: en

Suggested Citation

  • Gianluigi Coppola & Monica Gambino & Alfonso Pellecchia & Dario Pinello & Evelina Carmen Sabatella, 2015. "Modelling The Technology Of Commercial Fishing Vessel In Italy: A Cost Function Approach," 2015 EAFE (European Association of Fisheries Economists) Conference Papers 017, Nisea.
    • Handle: RePEc:irf:wpaper:017
    as

    Download full text from publisher

    File URL: http://www.nisea.eu/EAFE2015/irf/wpaper/17_Coppola_and_others.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Itziar Lazkano, 2008. "Cost Structure and Capacity Utilisation in Multi-product Industries: An Application to the Basque Trawl Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 189-207, October.
    2. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    4. Eggert, Håkan & Tveterås, Ragnar, 2004. "Potential Rent and Overcapacity in the Swedish Baltic Sea Trawl Fishery," Working Papers in Economics 152, University of Gothenburg, Department of Economics.
    5. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
    6. Linda Nøstbakken, 2006. "Cost structure and capacity in the Norwegian pelagic fisheries," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1877-1887.
    7. Sean Pascoe, 2007. "Estimation of cost functions in a data poor environment: the case of capacity estimation in fisheries," Applied Economics, Taylor & Francis Journals, vol. 39(20), pages 2643-2654.
    8. Asche, Frank & Eggert, Håkan & Gudmundsson, Eyjolfur & Hoff, Ayoe & Pascoe, Sean, 2008. "Fisher's behaviour with individual vessel quotas--Over-capacity and potential rent: Five case studies," Marine Policy, Elsevier, vol. 32(6), pages 920-927, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pascoe, Sean & Vieira, Simon & Dichmont, Catherine M. & Punt, Andre´ E., 2011. "Optimal vessel size and output in the Australian northern prawn fishery: a restricted profit function approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 1-19.
    2. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    3. Alejandro Onofri & Lilyan E. Fulginiti, 2005. "Public Inputs and Productivty in the Agricultural Sector: A Dynamic Dual Approach," Others 0502011, University Library of Munich, Germany.
    4. Hammond, Christopher J., 1999. "The technology of library service provision: a cost function analysis of public library systems in the United Kingdom," Information Economics and Policy, Elsevier, vol. 11(3), pages 271-295, September.
    5. Gagné, Robert & Dionne, Georges, 1988. "Qu’en est-il des rendements d’échelle dans les industries québécoises et ontariennes de transport par camion?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 64(3), pages 380-395, septembre.
    6. Apostolos Serletis & Guohua Feng, 2015. "Imposing Theoretical Regularity on Flexible Functional Forms," Econometric Reviews, Taylor & Francis Journals, vol. 34(1-2), pages 198-227, February.
    7. Link, Heike, 2006. "An econometric analysis of motorway renewal costs in Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 19-34, January.
    8. William A. Barnett & Ikuyasu Usui, 2007. "The Theoretical Regularity Properties of the Normalized Quadratic Consumer Demand Model," International Symposia in Economic Theory and Econometrics, in: Functional Structure Inference, pages 107-127, Emerald Group Publishing Limited.
    9. Håkan Eggert & Ragnar Tveterås, 2013. "Productivity development in Icelandic, Norwegian and Swedish fisheries," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 709-720, February.
    10. Feng, Guohua & Serletis, Apostolos, 2008. "Productivity trends in U.S. manufacturing: Evidence from the NQ and AIM cost functions," Journal of Econometrics, Elsevier, vol. 142(1), pages 281-311, January.
    11. Gagné, Robert, 1988. "Réglementation et technologie dans l’industrie du transport par camion : une présentation de la méthodologie," L'Actualité Economique, Société Canadienne de Science Economique, vol. 64(2), pages 287-310, juin.
    12. Serletis, Apostolos & Shahmoradi, Asghar, 2010. "Consumption effects of government purchases," Journal of Macroeconomics, Elsevier, vol. 32(3), pages 892-905, September.
    13. Apostolos Serletis, 2012. "Interfuel Substitution in the United States," World Scientific Book Chapters, in: Interfuel Substitution, chapter 2, pages 11-35, World Scientific Publishing Co. Pte. Ltd..
    14. Surry, Yves, 1989. "The "Constant Difference Of Elasticities" (Cde) Functional Form: A Neglected Alternative," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270500, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Dongfeng Chang & Apostolos Serletis, 2014. "The Demand For Gasoline: Evidence From Household Survey Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(2), pages 291-313, March.
    16. Fofana, Abdulai & Jaffry, Shabbar, 2008. "Measuring Oligopsony Power of UK Salmon Retailers," Working Papers 61116, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    17. Ling-yun He & Li Liu, 2016. "The demand for road transport in China: imposing theoretical regularity and flexible functional forms selection," Papers 1612.02656, arXiv.org.
    18. Keuzenkamp, Hugo A. & Barten, Anton P., 1995. "Rejection without falsification on the history of testing the homogeneity condition in the theory of consumer demand," Journal of Econometrics, Elsevier, vol. 67(1), pages 103-127, May.
    19. Laura Spierdijk & Sherrill Shaffer & Tim Considine, 2016. "Adapting to changing input prices in response to the crisis: The case of US commercial banks," CAMA Working Papers 2016-15, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    20. Barnett, William A. & Serletis, Apostolos, 2008. "The Differential Approach to Demand Analysis and the Rotterdam Model," MPRA Paper 12319, University Library of Munich, Germany.

    More about this item

    Keywords

    : Capacity; Economies of Scale; Translog Cost Function;
    All these keywords.

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:irf:wpaper:017. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Monica Gambino (email available below). General contact details of provider: http://www.nisea.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.