A bayesian estimation of the economic effects of the Common Fisheries Policy on the Galician Fleet: a dynamic stochastic general equilibrium approach

Esteban Colla-De-Robertis, Jose-Maria Da-Rocha, Javier García-Cutrin, María-José Gutiérrez and Raul Prellezo

MPRA Paper from University Library of Munich, Germany

Abstract: What would have happened if a relatively looser fisheries policy had been implemented in the European Union (EU)? Using Bayesian methods a Dynamic Stochastic General Equilib- rium (DSGE) model is estimated to assess the impact of the European Common Fisheries Policy (CFP) on the economic performance of a Galician (north-west of Spain) fleet highly dependant on the EU southern stock of hake. Our counterfactual analysis shows that if a less effective CFP had been implemented during the period 1986-2012, ‘fishing opportunities” would have increased, leading to an increase in labor hours of 4.87%. However, this increase in fishing activity would have worsened the profitability of the fleet, dropping wages and rental price of capital by 6.79% and 0.88%, respectively. Welfare would also be negatively affected since, in addition to the increase in hours worked, consumption would have reduced by 0.59%.

Keywords: CFP; Bayesian Estimation; DSGE; Spanish Fleet (search for similar items in EconPapers)
JEL-codes: Q22 (search for similar items in EconPapers)
Date: 2018-08-01
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (1)

Forthcoming in Ocean and Coastal Management January.167(2018): pp. 137-144

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89944

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