Document Type
Article
Date
11-2006
Keywords
Stochastic frontier, Efficiency probability
Disciplines
Economics
Description/Abstract
We use a stochastic production frontier model to investigate the presence of heterogeneous production and its impact on fleet capacity and capacity utilization in a multi-species fishery. We propose a new fleet capacity estimate that incorporates complete information on the stochastic differences between vessel-specific technical efficiency distributions. Results indicate that ignoring heterogeneity in production technologies within a multispecies fishery as well as the complete distribution of a vessel’s technical efficiency score, may lead to erroneous fleet-wide production profiles and estimates of capacity. Our new estimate of capacity enables out-of-sample production predictions which may be useful to policy makers.
Recommended Citation
Feltoven, Ronald G.; Horrace, William C.; and Schnier, Kurt E., "Estimating Heterogeneous Capacity and Capacity Utilization in a Multi-Species Fishery" (2006). Economics - All Scholarship. 25.
https://surface.syr.edu/ecn/25
Source
local input
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
