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Cost structure and capacity utilisation in multi-product industries an application to the Basque trawl industry

, : Cost structure and capacity utilisation in multi-product industries an application to the Basque trawl industry. Environmental And Resource Economics: 2, 189-207

To empirically study production structure and the capacity level at which vessels are harvesting, a short-run translog cost function is estimated. From the estimated parameters, two capacity utilisation measures are calculated (ray returns to scale and a dual capacity utilisation measure). Both capacity utilisation measures suggest that there is excess capacity in the Basque trawler fleet. These measures are also estimated annually and they indicate the same conclusion.


DOI: 10.1007/s10640-007-9187-3

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