Demersal Fishing in Chile: Technical Efficiency and Scale of Operation

42 Pages Posted: 3 Sep 2008

See all articles by Julio Peña-Torres

Julio Peña-Torres

Universidad Alberto Hurtado - Departamento de Economia y Administracion

Julio Cesar Aguirre Montoya

affiliation not provided to SSRN

Rene Cerda

affiliation not provided to SSRN

Date Written: June 1, 2004

Abstract

This paper estimates technical efficiency in fishing activities of industrial vessels that operated during the 1990-2000 period in the "Merluccius gayi" fishery. Two algorithms -with fixed and random effects- used to estimate stochastic production frontiers are compared. The main results are: (a) There is a high and significant correlation between the effi-ciency rankings obtained with the two algorithms. (b) The fixed effect algorithm generates greater efficiency scores and more disperse efficiency distributions. (c) Both algorithms estimate greater efficiencies for larger boats and boats with more engine power. Smaller boats display greater dispersion in their estimated efficiencies. (d) Consistent estimators in-sinuate the presence of decreasing marginal returns as the fishing effort of the boat increases. (e) This last result is consistent with the evidence of congestion effects, associated to the scale of operation of the total fleet under analysis. (f) The empirical relevance of the Translog functional form is confirmed.

Note: Downloadable document is in Spanish.

JEL Classification: Q22, C33, L7

Suggested Citation

Peña-Torres, Julio and Aguirre Montoya, Julio Cesar and Cerda, Rene, Demersal Fishing in Chile: Technical Efficiency and Scale of Operation (June 1, 2004). Revista de Analisis Economico, Vol. 19, No. 1, 2004, Available at SSRN: https://ssrn.com/abstract=1262314

Julio Peña-Torres (Contact Author)

Universidad Alberto Hurtado - Departamento de Economia y Administracion ( email )

Erasmo Escala 1835
Santiago, 6500620
Chile

Julio Cesar Aguirre Montoya

affiliation not provided to SSRN

Rene Cerda

affiliation not provided to SSRN

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