Bioeconomic Production Function in Fisheries: Theoretical and Empirical Analysis
The traditional "fishing effort" approach to fisheries economics implies the existence of a production function with fishing effort and fish abundance as independent variables. It is shown how the existence of bionomic equilibrium depends on the shape of this production function, as well as the demand and effort cost functions. The analysis is related to the recent discussion of collapses in fisheries occurring as a result of fish availability being inversely related to fish abundance. A Cobb–Douglas production function, with effort and fish biomass as independent variables, is estimated for the Lofoten fishery. This indicates that the availability coefficient increases as the fish stock is depleted. Finally, the fishing effort approach is integrated with neoclassical production analysis. Fishing effort is regarded as being produced by labor and capital, and an effort frontier production function is estimated for selected Norwegian fisheries. This makes it possible to estimate optimal vessel size and capital intensity. Fishing vessels appear to be undersized but not too capital intensive.