Econometric Measurement of Fishing Capacity and Capacity Utilization
This project is aimed at developing a capacity measurement methodology
that will be useful for management purposes. The impetus for this research
is the recent trend toward frontier-based capacity measurement, in which
capacity estimates embody the notion that vessels could increase their
efficiency to the highest levels exhibited by similar vessels.
The primary limitation of much of the recent work utilizing the frontier
is that inappropriate conclusions may be drawn regarding potential output
increases if comparisons are made among observations generated under different
regulatory, environmental, and resource conditions that are not independently
identified. Because data on these factors is typically unavailable, and
the potential problems due to its absence may be exacerbated in frontier
models, we propose an alternative, non-frontier methodology that is affected
to a lesser degree when such information is absent. Our approach uses
a multi-output, multi-input transformation function within a standard
econometric model. We also compute measures of CU that represent the amount
by which capacity is utilized relative to that which would occur in the
absence of a race for fish, using information from before and after property
rights were present in the fishery under study. We also compute capacity
and CU measures under various hypothetical increases in season length.
This work is being conducted jointly with Catherine Morrison Paul at the
University of California, Davis.
For more information, please contact: Ron.Felthoven@noaa.gov