Technical Efficiency of the Danish Trawl fleet: Are the Industrial Vessels Better than Others?

Niels Vestergaard (), Dale Squires (), Frank Jensen () and Jesper L. Andersen ()
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Dale Squires: U.S. National Institute of Marine Science, Southwest Fisheries Science Center
Jesper L. Andersen: Danish Research Institute of Food Economics, Fisheries Economics and Management Division

No 32/02, Working Papers from University of Southern Denmark, Department of Environmental and Business Economics

Abstract: Technical efficiency in the Danish trawl fishery in the North Sea is estimated for 1997 and 1998 by a stochastic production frontier model. This model allows noise when the frontier and the technical efficiency is found, which for fisheries is a reasonable assumption. The results show that the production frontier can be modelled by a translog function without time effects and a technical ineffi-ciency function. The type of fishery (industrial or consumption), size of vessel (greater or lesser than 60 GRT) and year give a good explanation for the ineffi-ciency in the fleet. The average technical efficiency is estimated to be 0.82. On average, industrial vessels have a higher technical efficiency than human con-sumption vessels, and smaller vessels have higher technical efficiency than lar-ger vessels. In sum, the analysis reveals that vessel larger than 60 GRT and fishing industrial species are the most efficient.

Keywords: Technical efficiency; stochastic production frontier; Danish trawl fishery (search for similar items in EconPapers)
Date: 2002-06
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