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Estimating Heterogeneous Production in Fisheries

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Abstract

Stochastic production frontier models are used extensively in the agricultural and resource economics literature to estimate production functions and technical efficiency, as well as to guide policy. Traditionally these models assume that each agent's production can be specified as a representative, homogeneous function. This paper proposes the synthesis of a latent class regression and an aagricultural production frontier model to estimate technical efficiency while allowing for the possibility of production heterogeneity. We use this model to estimate a latent class production function and efficiency measures for vessels in the Northeast Atlantic herring fishery. Our results suggest that traditional measures of technical efficiency may be incorrect, if heterogeneity of agricultural production exists.

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  • Kurt E. Schnier & Christopher M. Anderson & William C. Horrace, 2006. "Estimating Heterogeneous Production in Fisheries," Center for Policy Research Working Papers 80, Center for Policy Research, Maxwell School, Syracuse University.
    • Handle: RePEc:max:cprwps:80
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    File URL: https://surface.syr.edu/cpr/84/
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    Citations

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    Cited by:

    1. Alfonso Flores-Lagunes & William C. Horrace & Kurt E. Schnier, 2007. "Identifying technically efficient fishing vessels: a non-empty, minimal subset approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(4), pages 729-745.
    2. Ronald Felthoven & William Horrace & Kurt Schnier, 2009. "Estimating heterogeneous capacity and capacity utilization in a multi-species fishery," Journal of Productivity Analysis, Springer, vol. 32(3), pages 173-189, December.
    3. Cullmann, Astrid & Zloczysti, Petra, 2013. "Towards an Efficient Use of R&D ? Accounting for Heterogeneity in the OECD," CEPR Discussion Papers 9345, C.E.P.R. Discussion Papers.
    4. M.O. Adewumi & Ayodele Jimoh & O.A. Omotesho, 2013. "Implications of the Presence of Large Scale Commercial Farmers on Small Scale Farming in Nigeria. The Case of Zimbabwean Farmers in Kwara State," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(4), pages 67-73, December.
    5. Sakano, Ryoichi & Obeng, Kofi, 2011. "Examining the Inefficiency of Transit Systems Using Latent Class Stochastic Frontier Models," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 50(2).
    6. 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).

    More about this item

    Keywords

    latent class regression; EC algorithm; stochastic production frontier; technical efficiency;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-

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