research product . 2016

Fleet dynamics and capital malleability

Da Rocha Alvarez, Jose Maria; Prellezo, Raul; Sempere, Jaume; Taboada-Antelo, Luis;
English
  • Published: 01 Dec 2016
  • Country: Germany
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.
Subjects
free text keywords: Q20 - General
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Other Communities
  • European Marine Science Marine Environmental Science : Science, Technology, and Society Initiative to minimize Unwanted Catches in European Fisheries
Funded by
EC| MINOUW
Project
MINOUW
Science, Technology, and Society Initiative to minimize Unwanted Catches in European Fisheries
  • Funder: European Commission (EC)
  • Project Code: 634495
  • Funding stream: H2020 | RIA
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