A Short-Run Model of Capital Stuffing in the Pacific Halibut Fishery
- 1 January 1986
- journal article
- research article
- Published by University of Chicago Press in Marine Resource Economics
- Vol. 3 (2) , 137-153
- https://doi.org/10.1086/mre.3.2.42871984
Abstract
One of the predicted effects of regulation to curtail overfishing is "capital stuffing," in which boats are overcapitalized to take maximum advantage of limited-entry licensing or restrictions of the fishing season. The present paper utilizes a short-run competitive fishery model to assess the effects of quotas and season restrictions in the Pacific halibut fishery. The results in this case show labor productivity (a proxy for capital intensity) to be less strongly related to the length of the fishing season than to the halibut price, implying that the main effect of the quota may be an indirect one, through restricting supply and raising the price.Keywords
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