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Economic versus physical input measures in the analysis of technical efficiency in fisheries

Author

Listed:
  • Sean Pascoe
  • Parastoo Hassaszahed
  • Jesper Anderson
  • Knud Korsbrekke

Abstract

The measurement of technical efficiency requires the estimation of an appropriate production frontier. This is based on a set of inputs that are assumed to influence the level of output. Deviations from this frontier production function are separated into random variation and inefficiency. However, mis-specification of the production function through the use of inappropriate input measures may result in a bias in the measures of inefficiency. In fisheries, production is generally assumed to be a function of stock size, fishing time and the level of physical inputs employed. Defining the appropriate levels of physical inputs, however, is not straightforward, and several alternative measures are available. While economic measures of capital are more intuitively appealing, physical measures are generally readily available and hence less costly to collect. In this study, technical efficiency is measured for three fleet segments operating in the North Sea using three different gear types. The effects of using different measures of capital in the production frontier on the efficiency estimates are examined.

Suggested Citation

  • Sean Pascoe & Parastoo Hassaszahed & Jesper Anderson & Knud Korsbrekke, 2003. "Economic versus physical input measures in the analysis of technical efficiency in fisheries," Applied Economics, Taylor & Francis Journals, vol. 35(15), pages 1699-1710.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:15:p:1699-1710
    DOI: 10.1080/0003684032000134574
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    References listed on IDEAS

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    Cited by:

    1. Catherine J. Morrison Paul & Ronald G. Felthoven & Marcelo de O. Torres, 2010. "Productive performance in fisheries: modeling, measurement, and management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 343-360, July.
    2. Stephanie McWhinnie & Kofi Otumawu-Apreku, 2013. "Profit Efficiency of the South Australian Rock Lobster Fishery: Nerlovian and Directional Distance Function Approach," School of Economics and Public Policy Working Papers 2013-13, University of Adelaide, School of Economics and Public Policy.
    3. Stephanie McWhinnie & Kofi Otumawu-Apreku, 2013. "Evaluating Profit Efficiency of the South Australian Rock Lobster Fishery: Nerlovian and Directional Distance Function Approach," School of Economics and Public Policy Working Papers 2013-18, University of Adelaide, School of Economics and Public Policy.
    4. Quang Nguyen & Sean Pascoe & Louisa Coglan & Son Nghiem, 2021. "The sensitivity of efficiency scores to input and other choices in stochastic frontier analysis: an empirical investigation," Journal of Productivity Analysis, Springer, vol. 55(1), pages 31-40, February.

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