Skip to main content
Article
Estimating Heterogeneous Production in Fisheries
Center for Policy Research
  • Kurt E. Schnier, University of Rhode Island, Department of Environmental and Natural Resource Economics
  • Christopher M. Anderson, University of Rhode Island, Department of Environmental and Natural Resource Economics
  • William Clinton Horrace, Syracuse University, Maxwell School, Center for Policy Research
Description/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 agricultural 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.

Document Type
Working Paper
Date
1-1-2006
Keywords
  • latent class regression,
  • EC algorithm,
  • stochastic production frontier,
  • technical efficiency
Language
English
Series
Working Papers Series
Disciplines
Additional Information
Harvest from RePEc at http://repec.org
Source
Metadata from RePEc
Citation Information
Kurt E. Schnier, Christopher M. Anderson and William Clinton Horrace. "Estimating Heterogeneous Production in Fisheries" (2006)
Available at: http://works.bepress.com/horrace/17/