Fleet dynamics and capital malleability

José María Da-Rocha (), Raul Prellezo (), Jaume Sempere and Luís Taboada Antelo ()
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José María Da-Rocha: ITAM and Universidad de Vigo
Raul Prellezo: AZTI
Luís Taboada Antelo: Instituto de Investigaciones Marinas, CSIC

Serie documentos de trabajo del Centro de Estudios Económicos from El Colegio de México, Centro de Estudios Económicos

Abstract: When individual stay/exit decisions depend on the opportunity cost of exiting, capital malleability is endogenously determined by the instruments used for stock rehabilitation. In a General Equilibrium framework, we characterize the transitional dynamics caused by stock rehabilitation policies. We show that a management policy based on input controls generates less exit, a less productive fleet, and overcapitalization, as input controls require a higher number of firms to achieve the same biological targets. Using data from the Multiannual Plan for the Western Mediterranean, we show that the use of input controls generates a Spanish fleet around 14 percent higher than the one that would result from a non distortionary instrument.

Keywords: firm dynamics; investment; general equilibrium; fisheries (search for similar items in EconPapers)
JEL-codes: Q22 (search for similar items in EconPapers)
Date: 2016-12
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https://cee.colmex.mx/dts/2016/DT-2016-9.pdf (application/pdf)

Related works:
Working Paper: Fleet dynamics and capital malleability (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:emx:ceedoc:2016-09

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