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Estimating Heterogeneous Primal Capacity and Capacity Utilization Measures in a Multi-Species Fishery

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

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. Furthermore, we propose a new fleet capacity estimate that incorporates complete information on the stochastic differences between each vessel-specific technical efficiency distribution. 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 yield erroneous fleet-wide production profiles and estimates of capacity.

Suggested Citation

  • Felthoven, Ronald G. & Horrace, William C. & Schnier, Kurt E., 2006. "Estimating Heterogeneous Primal Capacity and Capacity Utilization Measures in a Multi-Species Fishery," 2006 Annual meeting, July 23-26, Long Beach, CA 21276, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21276
    DOI: 10.22004/ag.econ.21276
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