Estimating heterogeneous capacity and capacity utilization in a multi-species fishery

Ronald G. Felthoven, William C. Horrace, Kurt E. Schnier

Research output: Contribution to journalArticle

13 Scopus citations

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 multi-species 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.

Original languageEnglish (US)
Pages (from-to)173-189
Number of pages17
JournalJournal of Productivity Analysis
Volume32
Issue number3
DOIs
StatePublished - Oct 2009

Keywords

  • Efficiency probability
  • Stochastic frontier

ASJC Scopus subject areas

  • Business and International Management
  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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