Short-run Johansen frontier-based industry models: methodological refinements and empirical illustration on fisheries

Kristiaan Kerstens, Jafar Sadeghi, Ignace Woestyne and John Walden
Additional contact information
Jafar Sadeghi: IESEG School of Management
Ignace Woestyne: Brussels Campus
John Walden: Northeast Fisheries Science Center

Journal of Productivity Analysis, 2024, vol. 61, issue 1, No 5, 47-62

Abstract: Abstract This contribution focuses on extending the current state of the art in a central resource allocation planning model known under the name of the short-run Johansen industry model in three ways. First, we correct a long-standing issue of the correct choice of weight variables on the capacity distribution by guaranteeing that these weights determine production combinations that belong to the production technology on which the plant capacity estimates are based in the first place. Second, we exploit the gap between average practice and best practice models by introducing an efficiency improvement imperative that allows for partial technical inefficiency when planning. Third, instead of only considering output-oriented plant capacity, we allow for alternative plant capacity concepts. In particular, we introduce an input-oriented plant capacity concept, and an alternative attainable output-oriented plant capacity concept that corrects a major empirical issue in the traditional output-oriented plant capacity notion. These methodological refinements are illustrated with a data set on U.S. fishing vessels by developing a planning model to curb overfishing.

Keywords: Data envelopment analysis; Free disposal hull; Technology; Plant capacity; Planning (search for similar items in EconPapers)
JEL-codes: D24 L52 O21 (search for similar items in EconPapers)
Date: 2024
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Related works:
Working Paper: Short-run Johansen frontier-based industry models: methodological refinements and empirical illustration on fisheries (2023)
Working Paper: Short-Run Johansen Frontier-Based Industry Models: Methodological Refinements and Empirical Illustration on Fisheries (2020)
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DOI: 10.1007/s11123-023-00704-0

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