Correcting for Measurement Error in a Stochastic Frontier Model: A Fishery Context Report as inadecuate




Correcting for Measurement Error in a Stochastic Frontier Model: A Fishery Context - Download this document for free, or read online. Document in PDF available to download.

Using data from the Mid-Atlantic surfclam fishery, this study examines the effect of measurementerror on the analysis of technical efficiency. After specifying a stochastic frontiermodel and estimating it under naive analysis, a measurement error correction technique knownas Simulation Extrapolation (SIMEX) is used to obtain less biased estimates of technical efficiencyand production parameters. The SIMEX estimates of the stochastic frontier model agreewith economic theory and show that important relationships between technical efficiency andvessel characteristics are present, something the naive estimates do not. Both sets of estimatesshow regional variation in technical efficiency, possibly due to declining landings per-uniteffort,suggesting future fishery management should take this into account.

Keywords: commercial fisheries ; stochastic frontier ; technical efficiency ; measurement error

Subject(s): Research and Development/Tech Change/Emerging Technologies

Research Methods/ Statistical Methods

Issue Date: 2013

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/150499

Total Pages: 20

Record appears in: Agricultural and Applied Economics Association (AAEA) > 2013 Annual Meeting, August 4-6, 2013, Washington, D.C.





Author: Burns, Christopher

Source: http://ageconsearch.umn.edu/record/150499?ln=en







Related documents