wage employment contracts this paper studies the efficient agreements about the dependence of workers earnings on employment when the employment level is controlled by firms the firms superior information about profitability conditions is responsible for this form of contract governance under plausible assumptions such agreements will cause employment to diverge from efficiency as a byproduct of their attempt to mitigate risk it is shown that if leisure is a normal good and firms are risk neutral employment is always above the efficient level such a one period implicit contracting model cannot therefore be used to explain unemployment as a rational byproduct of risk sharing between workers and a risk neutral firm under conditions of asymmetric information

adjusting input output models for capacity utilization in service industries abstract the input output i o models assume the stability of economic ratios and regional multipliers over the evaluation period for manufacturing sectors constant multipliers within a short term period may present a reasonable picture of the real world production function tourism industry however is composed of a variety of services in which total output and factor inputs are strongly influenced by capacity utilization cu a conceptual model is proposed in this paper which purports that shifts in cu for perishable services will lead to economies of scale in inputs price changes in the final output capacity constraint on domestic supply and substitution between input factors especially between capital and labor these factors simultaneously modify i o ratios and multipliers traditional i o analysis which assumes constant economic ratios and multipliers will therefore lead to biases in tourism impact estimates especially to value added components as it does not reflect the changing costs of operation in response to shifting supply and demand

tradeable permits missing markets and technology this paper examines the effects of missing markets heterogeneous pollutants and the pollution technology of firms on the efficacy of transferable pollution permits under the assumption of perfect competition in all markets we show that if firms can substitute among pollutants then setting the optimal number of permits for only one pollutant will not in general lead to an efficient outcome the degree of the inefficiency will depend on the information set available to the regulator and the substitutability among pollutants by firms when establishing transferable pollution rights regulators should therefore consider the technology of firms if firms discharge pollutants in the same fixed proportions then the regulator need only set a market for one of the pollutants to ensure an efficient outcome where firms can substitute among pollutants however establishing a market for only one pollutant provides an incentive for firms to substitute to unregulated ones this is an important policy issue as substitutability among pollutants within and across production processes may dampen the dynamic advantages of a tradeable permit policy

examining the global environmental impact of regional consumption activities part 2 review of input output models for the assessment of environmental impacts embodied in trade this paper offers a detailed review of recently described single and multi region input output models used to assess environmental impacts of internationally traded goods and services it is the second part of a two part contribution in part 1 turner k lenzen m wiedmann t and barrett j in press examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics we describe how to enumerate the resource and pollution content of inter regional and inter national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of ecological footprints a large number of such environment economic models have been described but only in the last few years models have emerged that use a more sophisticated multi region multi sector input output framework this has been made possible through improvements in data availability and quality as well as computability we identify six major models that employ multi sector multi region input output analysis in order to calculate environmental impacts embodied in international trade results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe land and energy use as well as emissions in a multi region multi sector and multi directional trade model with global coverage and detailed sector disaggregation only then reliable figures for indicators of impacts embodied in trade such as the ecological footprint can be derived

optimal labour contracts when workers have a variety of privately observed reservation wages if a firm does not know the individual ex post outside opportunities of its contracted workforce then it can use hours wages and redundancy payments to screen them will a second best contract have underemployment inefficiency or overemployment and with a stochastic contract are those workers randomly selected for layoff worse off than their retained colleagues involuntary layoff or vice versa involuntary retention the answers depend on the nature of the workers preferences two polar cases are looked at corresponding to permanent and temporary layoff the former is characterized by overemployment and involuntary retention the latter by underemployment and involuntary layoff also examined are simple contracts where all retained workers are paid a common wage and all laid off workers receive a common redundancy payment handling asymmetric information in stochastic contracts has led to two technical innovations first a number of results are proved even though all the truth telling constraints are explicitly included second a new regularity condition is found under which the local constraints are sufficient to ensure global incentive compatibility at an optimum

how responsible is a region for its carbon emissions an empirical general equilibrium analysis targets for co2 reduction tend to be set in terms of the amount of pollution generated within the borders of a given region or nation that is under a production accounting principle however in recent years there has been increased public and policy interest in the notion of a carbon footprint or the amount of pollution generated globally to serve final consumption demand within a region or nation that is switching focus to a consumption accounting principle however this paper argues that a potential issue arising from the increasing focus on consumption based carbon footprint type measures is that while regional co2 generation embodied in export production is attributed outside of the region i e to the carbon footprints of other regions nations regional consumers are likely to benefit from such production moreover where there is a geographical and supply chain gap between producers and final consumers it may be difficult to identify precisely whose carbon footprint emissions should be allocated to

firm behavior under quantity controls the theory of virtual quantities the theory of virtual quantities the dual to virtual prices provides a framework to analyze competitive multiproduct firm behavior under multiple quantity controls on inputs and outputs including command and control quotas and transferable property rights the framework addresses the firm s reactions to regulatory controls impacts of adding or dropping quantity controls inferring unrationed from rationed production and conversion from command and control quotas to cap and trade systems with transferable property rights and secondary market behavior the paper develops reasons for failure of quasi concavity of technology extends the elasticity of intensity s properties and integrates the virtual price and virtual quantity frameworks virtual quantities are applied to assess potential firm responses to quantity controls and a potential transferable property right in a malaysian fishery

an economic analysis of the fisheries bycatch problem abstract bycatch is the incidental take of a species that has value to some other group this paper compares open access and individual transferable quota equilibria to the equilibrium in which the joint value of the fisheries is maximized the open access induced problems can be corrected by an individual transferable quota system only if both the target species and the bycatch species have tradable quotas and only if the bycatch species does not have existence value there exists a range of the bycatch to target species harvest levels for which the total harvest of each will be exactly taken by a given technology even under open access however there may not even exist a unique open access equilibrium if bycatch is allocated by rule of capture prohibitions on the sale of bycatch reduce the bycatch level but they also reduce social welfare

from production based to consumption based national emission inventories abstract under the united national framework convention of climate change unfccc countries are required to submit national emission inventories nei to benchmark reductions in greenhouse gas ghg emissions depending on the definition and system boundary of the nei the mitigation options and priorities may vary the territorial system boundary used by the unfccc has been critiqued for not including international transportation and potentially causing carbon leakage to address these issues past literature has argued in favour of using consumption based nei in climate policy this article discusses several issues in moving from the standard production based nei to consumption based nei first two distinct accounting approaches for constructing consumption based nei are presented the approaches differ in the allocation of intermediate consumption of imported products second a consistent method of weighting production based and consumption based nei is discussed this is an extension of the previous literature on shared responsibility to nei third due to increased uncertainty and a wide system boundary it may be difficult to implement consumption based nei directly into climate policy several alternative options for incorporating consumption based inventories into climate policy are discussed

cost structure and capacity utilisation in multi product industries an application to the basque trawl industry 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 the basque trawler fleet can therefore gain from increased production levels

a review of recent multi region input output models used for consumption based emission and resource accounting abstract the interest in consumption based emission and resource accounting has grown significantly many studies juxtapose consumer emissions carbon footprint and producer territorial emissions of greenhouse gases in order to demonstrate the effects of trade on the national emission budget to this end a respectable number of studies have been undertaken worldwide in order to estimate emissions embedded in international trade of numerous countries and world regions input output approaches and increasingly multi region input output mrio models are commonly chosen as they provide an appropriate methodological framework for complete carbon footprint estimates at the national and supra national level with increasing processing capabilities of computers and a wider availability of economic accounts environmental accounts and trade data such models are now being implemented on a wide scale after a brief overview of salient single region input output studies i provide an in depth review of the most recent multi region input output models used for the purpose of consumption based environmental accounting the main methodological features and important results are described for around twenty studies covering the years 2007 to 2009 this is followed by a detailed review of studies dealing with uncertainty in mrio analysis an area which has not received a lot of attention so far i conclude that further research is mainly needed in two areas a improvements in data availability and quality and b improvements in the accuracy of mrio modelling

distributional consequences of fisheries regulations an empirical methodology for evaluating fisheries regulations in terms of both rent gains and employment losses is proposed a royalty tax and a change in catch distribution among competing vessel types are compared with the status quo of restricted access the case study is the british columbia commercial salmon fishery results suggest that rent gains associated with the alternatives are not always sufficient to compensate for losses in fishing income

a framework to account for the tourism carbon footprint at island destinations abstract given concerns over greenhouse gases and the role of tourism in generating such environmental externality a consistent carbon measurement framework is needed this paper combines principles derived from production and consumption accounting measures to better allocate the responsibility for carbon emissions utilizing a boundary that includes domestic tourism expenditure inbound tourism expenditure and local spending associated with outbound travel this paper a proposes a framework to measure the domestic total carbon effect and foreign sourced effect and b applies the analytical framework to taiwan the empirical study indicates that the carbon emissions for domestic tourism industries international aviation and imports accounted for 47 28 and 25 of the tourism carbon footprint it is suggested that an island s dependence on both aviation and international trade leads to a larger share of emissions outside their geographic territory with respect to tourism development

enforcement costs and the optimal magnitude and probability of fines whenever the government uses fines to control harmful activities it incurs certain costs in connection with the enforcement process this article will show how these costs affect the optimal magnitude of fines and the optimal degree of enforcement effort that is the optimal probability of detection of those who commit harmful acts we will distinguish between two types of enforcement costs fixed enforcement costs are costs that do not depend on the number of individuals who commit harmful acts these costs would include for example the expenses borne by a pollution control agency in testing water quality in a lake variable enforcement costs are costs that do depend on the number of individuals who commit harmful acts such as the costs of prosecuting and penalizing polluters in our basic model we assume that the fixed enforcement costs are the costs of maintaining the probability of detection at a certain level and that the variable enforcement costs are the costs of fining individuals the main conclusions of this article may be summarized as follows the optimalfine equals the harm properly inflatedfor the chance of not being detected plus the variable enforcement cost of imposing the fine if the fine is of this magnitude the expected fine will equal the harm caused by the harmful act plus the expected increase in enforcement costs occasioned by it for instance suppose that the probability of detecting a

sustainable fisheries development in the tropics trawlers and licence limitation in malaysia sustainable fisheries development requires sound fisheries management area licence limitation programmes may form the cornerstone for most tropical multispecies fisheries management programmes an empirical analysis of peninsular malaysian fishing trawlers is used to design an area licence limitation programme that conforms to the multiproduct production technology and cost and revenue structures to best accommodate condtions of asymmetric information between the regulator and fishing vessels

decomposition of tourism greenhouse gas emissions revealing the dynamics between tourism economic growth technological efficiency and carbon emissions abstract this study proposes an analytical framework for decomposing the national tourism carbon footprint and carbon efficiency to identify the dynamics between economic growth technological efficiency and environmental externality using the environmentally extended input output model and decomposition methods tourism carbon changes are decomposed into the economic factors of total consumption and purchasing patterns and the production factors of industry input structure and technological improvement this macro level approach provides a basis for 1 assessing whether total tourism emissions increase in direct proportion to tourism consumption over time 2 tracing the underlying determinants and their effects on tourism emissions expansion and eco efficiency performance and 3 comparing the carbon performance of the tourism industry against the national average based on the example of taiwan the results demonstrate that we are a long way from the goal of using the technological efficiencies of production to offset tourism based carbon emissions

optimal labour contracts under asymmetric information an introduction the review of economic studies has instituted a new series of lectures to be given annually by a younger british economist at the association of university teachers of economics meetings the choice of lecturer is determined by a panel whose members are currently professors hahn mirrlees and nobay this paper is a revised version of the first lecture in the series it was presented at the aute meeting held at the university of surrey in april 1982 and was refereed in the usual way mak

unemployment insurance and redistributive taxation abstract this paper studies the simultaneous determination of the socially optimal levels of unemployment insurance income taxation and experience rating it argues that there is a normative justification for state unemployment insurance when the government wishes to use redistributive taxes but cannot enforce lump sum transfers it is not socially optimal for there to be full experience rating of unemployment insurance schemes one distortion should be used to off set another the state must then intervene in the provision of insurance for those without jobs

dynamic use of closures and imperfectly enforced quotas in a metapopulation the dynamic efficiency of closures in bioeconomic systems depends upon stock levels and in situ values that evolve over time and on relative costs of implementation a model of a harvested metapopulation is presented in which second best reduction of harvest from open access levels using input quotas balances monitoring costs against dynamic benefits of mitigating overharvesting temporary or permanent closures though generally still second best are preferable to quotas under certain conditions as demonstrated for a representative patch and time period interactions between patches are discussed numerical solutions illustrate comparative dynamics of closure use and show their potential benefits in a dynamic regulatory path

hidden flexibility institutions incentives and the margins of selectivity in fishing the degree to which selectivity in fisheries is malleable to changes in incentive structures is critical for policy design we examine data for a multispecies trawl fishery before and after a transition from management under common pool quotas to a fishery cooperative and note a substantial shift in postcooperative catch from bycatch and toward valuable target species we examine the margins used to affect catch composition finding that large and fine scale spatial decision making and avoidance of night fishing were critical we argue that the poor incentives for selectivity in many systems may obscure significant flexibility in multispecies production technologies

economic man as a moral individual first there is the broadly ethical question how should one live to emphasize this connection is not the same as asserting that people will always act in ways they will themselves morally defend but only to recognize that ethical deliberations cannot be totally inconsequential to actual human behavior sen 1988 3 4 i introduction it is a plausible proposition that some people s behavior is affected significantly by moral considerations a growing literature in economics and related disciplines reviewed and analyzed in earlier work by two of the authors goldfarb and griffith 1991a griffith and goldfarb 1991b explores the possibility and desirability of incorporating these moral considerations into the economic analysis of individual behavior 1 a variety of approaches to introducing moral considerations into economic analysis have been put forward by contributors within economics including sen 1974 1977 1988 hirschman 1985 phelps 1975 vanberg 1988 brunner 1987 frank 1987 1988 hirshleifer 1985 mueller 1986 and schotter 1981 among others among related disciplines the philosophers gauthier 1986 and ulman margalit 1977 the sociologists coleman 1987 and etzioni 1986 1988 and the political scientist axelrod 1984 all present relevant analyses as our earlier review indicated these authors pursue three competing approaches introducing moral values as part of preference functions introducing moral norms or rules as constraints and introducing such norms as decision rules for coping with strategic interaction gaming situations we propose here a concrete method for including moral values in the economist s model of preferences our method maintains the standard economic framework of an agent maximizing his or her utility subject to constraints but modifies the utility function so that the enjoyment or utility from consuming a given set of goods varies in a lumpy or discontinuous way depending on the concurrent moral content of the individual s behavior moreover it offers an analytical representation of the linkage between preferring to act morally and the individual s being faced with possibly significant differences in constraints because of such moral considerations 2 the paper proceeds as follows section ii indicates where our approach fits in the existing literature incorporating moral values into preference functions section iii sets forth our approach to specifying these utility functions section iv suggests some extensions section v presents further discussion and conclusions ii relation to the literature while not directly inspired by the occupational choice literature our approach can be usefully viewed as an application of the economic model of occupational choice to modelling moral preferences 3 this approach helps fill an analytical gap between hochman and rodgers 1969 small modification of the standard microeconomic framework and the more extensive departures suggested by etzioni 1986 and sen 1974 1977 our model helps fill this gap by providing what we think is an intuitively appealing treatment of the discontinuous or lumpy content of important classes of moral decisions hochman and rodgers 1969 present an analysis of the possible relationship between moral and other values in the context of charitable transfers their analysis is now a standard ingredient in intermediate microeconomics textbooks 4 their interdependent utility approach puts impoverished individual y s income or utility into individual x s utility function one then analyzes the conditions under which individual x will either himself transfer resources to individual y or vote for a government program to make such a transfer this approach allows transfers that vary continuously from zero to very large amounts of money with decisions involving trade offs at the margin for our purposes this marginal trade off feature so useful for analyzing charitable transfers presents a very significant limitation when attempting to apply the model to a wider range of moral behavior

production quota in multiproduct pacific fisheries abstract assessing the individual firm s technology and costs in a multispecies fishery allows design of a more effective output quota prior to regulation by anticipating and controlling for the firm s regulation induced responses an empirical study of a pacific coast trawl fishery indicates that the firm s flexibility of product decision is tightly constrained by its technology and cost structure hence as the resource stock for the regulated species sablefish deteriorates and the trip quota progressively tightens the firm cannot sufficiently reorganize its product bundle to preclude increasingly large sablefish disposal this defeats the purpose of the production quota

unemployment insurance and involuntary unemployment the case of adverse selection abstract this paper studies the private and public provision of unemployment insurance in a model where equilibrium unemployment results from the use of the wage as a worker selection device it is shown that private provision will not occur essentially because those workers most desired by a firm place least value on such coverage respecting the same informational constraints public provision necessarily gives rise to some distortions in participation decisions but nonetheless is welfare improving in the aggregate

quota setting and enforcement choice in a shared fishery we model the exploitation of an international shared stock fishery which is managed using national quotas determined as agreed shares of an annual total allowable catch tac given its annual quota each country employs enforcement effort in order to maximise national social benefits while securing an acceptable degree of quota compliance by its fishing fleet we examine the determination of the tac which maximises the present value of the fishery given the agreed quota shares and each country s harvest and enforcement best response functions inefficiency may derive not only from non optimal tac shares but also from the countries implicit preferences for compliance we illustrate these findings with a set of numerical simulations finally we consider the incentives for countries to bid up the tac during international negotiations

further investigations into the factors affecting compliance with uk fishing quotas this paper reports the results of a more recent study of quota compliance in the u k fishery that was investigated in an earlier article in this journal hatcher et al 2000 the study collected more detailed data on fishermen s perceptions and experience of enforcement and sought to measure the financial incentive to cheat in addition whereas the earlier study used a binary approach to modelling the data we employed an orderedresponse model and included a number of scale regressors without transformation although we still find some evidence of normative influences on violation levels the results suggest that conventional economic incentives predominate in the fishery

unemployment and the efficiency wage hypothesis there has been much recent discussion of the reasons why prices in certain markets and in particular in labour markets may not adjust to eliminate excess supply the absence of speedy adjustment of prices is an essential feature of the recent models of disequilibrium macroeconomics but for the most part no explanation for this absence is provided from within those models one explanation that has been around in the literature for some time and has been receiving increasing attention recently is the efficiency wage hypothesis initially applied to developing economies see leibenstein i957 it has more recently been adapted to developed economies by weiss i 980 and used in the context of a keynesian macroeconomic model by hart i 980 similar concepts have been applied to the credit market by stiglitz and weiss i98i the purpose of the present paper is to explore further the conditions under which the notion of an efficiency wage is applicable and can provide an explanation of involuntary unemployment the essential feature of the efficiency wage hypothesis is that the productivity of a firm s employees increases as their wage is increased at least over an economically relevant part of its range if the wage paid by the firm is denoted by w the number of employees by l and the productivity of each employee by p w where p w o then the effective labour force of the firm e can be represented by

normative and social influences affecting compliance with fisheries regulations economic models of regulatory compliance in fisheries usually assume an instrumental determination of individual behavior in which the decision to comply or to violate depends primarily on the expected monetary costs and benefits policy implications tend as a result to focus only on deterrence that is increasing the expected monetary costs of violation more complete models of compliance behavior take into account factors such a social influence moral values and the perceived legitimacy of regulations and the regulatory authority the paper describes an investigation into the non monetary factors affecting compliance with output quota restrictions among fishermen in the united kingdom

analysis of electricity consumption in the tourism sector a decomposition approach abstract index decomposition analysis ida has become a common tool for studying the evolution of energy consumption in its initial form it comprises three contributions namely activity structure and intensity effects various sectors of activities were studied in the literature by employing ida approach and the present work proposes its application to the electricity consumption in the tourism sector the proposed decomposition analysis is developed on the basis of seven indexes grouped in three macro contributions namely energy intensity economic structure and industrial structure the decomposition is performed in the period 1995 2017 and italy was used as test case for the methodology the analysis highlights that overall the changes in electricity intensity and in the industrial structure were responsible for an increase of the electricity consumption of 5 581 gwh whereas the economic structure was responsible for a decrease of 1 337 gwh their contemporary effect determined a total variation of electricity consumption between 1995 and 2017 of 4 244 gwh results demonstrated that the proposed ida equation specifically tailored for the tourism sector allows to provide a detailed analytical explanation of the factors affecting electricity consumption in the italian tourism sector the same framework can be applied to any other country and source of energy

stock size harvesting costs and the potential for extinction the case of sealing starting in the 1960s considerable opposition to the canadian and norwegian harp seal hunt off newfoundland developed it was alleged that the seal hunt was unethical and that the seal population had been seriously depleted the purpose of this paper is to analyze the production function for the seal hunt based on data for the norwegian seal hunt particular attention is paid to the question whether free entry to the fishery will cause overexploitation this depends critically on the characteristics of the production function in particular the extent to which harvesting costs depend on stock size

estimating substitution and expansion effects using a profit function framework this study reports a first attempt to derive all the relevant information with respect to the structure of production of an industry using knowledge of only a profit function using estimates of a profit function for canadian agriculture a procedure to separate substitution and expansion effects for both inputs and outputs was implemented information concerning net input and output substitution and complementarity possibilities were obtained the most important empirical results suggest that the hypothesis of nonjoint production of crop and animal outputs in canadian agriculture cannot be rejected and that hired and operator labor are complements rather than substitutes

endogenous adverse selection and unemployment insurance in this paper we consider how the presence of private information may explain the failure of the private sector to provide unemployment insurance in particular we show how the interaction of private information regarding employees preferences for work with the unobservable level of effort exerted on the job may explain the absence of private unemployment insurance we also reflect on the implications of our findings for the role of the public sector in providing unemployment insurance

multiple input multiple output production choices and technology in the u s wheat region duality theory motivates a translog expected profit function consistent with multiple products price uncertainty preseason climate constraints acreage control policies and possibly nonhomothetic technology although multiple outputs are allowed enterprise specific data is not necessary instead time series measures of output revenues and expected prices input expenses and prices and fixed input flows are employed appropriate measures of elasticities of choice returns to size and biases in technological change are derived results indicated decreasing returns to size rather limited though complementary responsiveness of choices to price changes and the nature of biases in technological changes

total factor productivity change in the new england groundfish fishery 1964 1993 abstract we develop estimates of total factor productivity tfp change in the new england groundfish fishery from 1964 to 1993 using a procedure similar to squires 1992 rand j econom 23 2 221 236 method which extends standard tfp measurement by including the effect of fluctuations in stock abundance the results indicate that tfp increased on average by 4 4 per year from 1964 to 1993 a higher average rate of increase occurred between 1964 and 1982 possibly due to new technologies e g fishfinders tfp declined at 0 33 annually from 1983 to 1993 due to stringent output and effort control measures

long run profit functions for multiproduct firms a long run specification of the multiproduct profit function is developed from the restricted profit function the multiproduct restricted profit function and the envelope condition are used to estimate the optimal long run levels of the quasi fixed factor formulas for long run marshallian elasticities of substitution and transformation economies of scope product specific and overall economies of scale and economic measures of capacity utilization are developed for the translog functional form the methodology is illustrated by a case study of the new england otter trawl industry

transferable quotas enforcement costs and typical firms an empirical application to the norwegian trawler fleet an alternative to traditional regulations of fisheries to avoid rent dissipation is the use of individual transferable quotas itqs where prices in the quota market provide the necessary information to owners of harvest rights to contract with each other however even under such a decentralized regime information on the underlying technology of the fishing vessels is also necessary first since most fisheries consist of many interrelated production processes in order to avoid rent dissipation by discarding wrong output mix etc the structure of production in the multispecies fishery must be known to design a proper quota system second an itq system may create incentives for misreporting by understating the actual catch this may especially be the case where the expected degree of self enforcement is low the paper proposes a way to reduce the information requirements under regulation with asymmetric information by constructing a typical firm and comparing performance for the other vessels to this firm based on the typical firm and if the industry is relatively homogenous the performance and hence catch of any other firm in the industry can be predicted within a certain range further the paper applies this idea to the norwegian trawler fleet to assess the production structure in terms of jointness input output separability and the supply and demand elasticities for the fishing firms this information characterizes the fishery and thus how the quota system may be designed and how to construct a yardstick in order to reduce the enforcement cost under a decentralized regulation of itqs

testing for input substitution in a regulated fishery input restrictions are commonly used to prevent rent dissipation in fisheries this paper examines whether these schemes are successful by calculating the degree of input substitution between restricted and unrestricted inputs conventional elasticities of substitution cannot be used when the firm faces controls on the use of some inputs in this case the appropriate measure of substitution the elasticity of intensity must be used data from the british columbia salmon fishery provide evidence of input substitution possibilities for two vessel types these results call into question the usefulness of input control schemes

measuring progress towards carbon reduction in the uk the uk climate change bill proposes to establish legally binding targets for a 60 reduction in carbon dioxide emissions by 2050 this paper discusses the challenges posed by measuring progress towards this target it takes as a premise that the conventional productionbased accounting framework enshrined in the unfccc emissions accounting guidelines is inappropriate for this task because it fails to account for the carbon traded across the uk national boundary accordingly it sets out a consumption based accounting framework using a two region environmental input output eio model which could in principle measure progress in reducing the emissions attributable to final consumers in the uk it illustrates the use of this framework to measure the reduction in carbon dioxide achieved by the uk between 1990 the kyoto base year and the year 2004 and compares this against the production perspective the results indicate that any progress towards the uk s carbon reduction targets visible under a production perspective disappears completely when viewed from a consumption perspective but the robustness of this conclusion depends critically on the accuracy of underlying economic and environmental data sets as well as specific assumptions concerning imports by analysing the consistency of uk input output data we conclude that eio is still some way from being able to answer the critical question of the carbon trade balance for the uk in these circumstances measuring real progress towards carbon reduction in the uk remains elusive

strengthening governance of ocean fishery resources abstract governance of the world s marine fisheries is ill adapted to sustainability twenty years after the expansion of exclusive economic zones over most of the continental shelves fisheries worldwide face problems of stock depletion declining yields and increasing conflict other human activities in the ocean compound the effect what is wrong this paper is about the internal workings of fishery governance and their links to fishery outcomes the theme of this paper is that there are fundamental weaknesses in the way fishery governance works that contribute to sustainability problems basic requirements for healthy ocean fishery governance are not being met because the scope and structure of governance are weak although the particular forms of weakness vary with fisheries and with geopolitical regions the substance of the weakness is common across all regions what we ask of fishery governance is that it coordinate institutional rules and individual actions by performing certain functions incorporate multiple objectives representing different types of conservation and use bring the time horizons of private individuals into line with those of the public send signals of resource scarcity and enable effective adaptive responses promote legitimacy by reflecting accepted norms of equity and by controlling harmful opportunism contain both the level and distribution of transactions costs fishery governance is failing to adequately perform these functions as a result of the attributes of management scope and management structure at both national and international levels improvement of governance will rest on the adoption of a stable long term management scope and the construction of flexible management structures

multi output nonfrontier primal measures of capacity and capacity utilization this article implements an econometric approach for generating primal capacity output and utilization measures for fisheries in situations where regulatory environmental and resource conditions affect catch levels but are not independently identified in the data frontier based capacity models may interpret such impacts as production inefficiency however if such inefficiencies are unlikely to be eliminated the implied potential output increases may be unrealistic we develop a multi output multi input stochastic transformation function framework that permits various assumptions about how output composition may change when operating at full capacity we apply our model to catcher processor vessels in the alaskan pollock fishery

estimating the elasticity of substitution between restricted and unrestricted inputs in a regulated fishery a probit approach abstract catch effort vessel and skipper characteristic data for a sample of boats involved in the tasmanian rock lobster fishery in the 1983 1984 season are used to estimate a fishing effort production function nested in a cobb douglas fishery production function the initial effort function is translog but tests suggest that the ces form cannot be rejected the vessel s choice of fishing ground is modeled by a probit equation the output from which is included in the ols estimation of the production function the elasticity of substitution between the inputs which are restricted by regulation and the other inputs is of particular interest as it determines whether input restriction is an efficient form of regulation for the fishery the results suggest a value significantly less than unity

layoffs wages and unemployment insurance abstract the influence of unemployment insurance on wage and layoff behavior is analyzed in the context of optimal labor contracts responses of contract terms to changes in economic parameters are shown to depend in general on the nature of the initial contract the degree of workers risk aversion and the resolution of bargaining conflict layoffs are not necessarily reduced by an increase in experience rating or a reduction in the ui benefit product demand fluctuations tend to induce procyclical employment fluctuations but not wage fluctuation an implication of optimal contracts with private insurance suggests a reason for government intervention in ui provision

risk aversion experimental evidence from south african fishing communities we estimate the risk attitudes of a large sample of individuals from various fishing communities along the west coast of south africa female fishers and rights holders are found to be more risk averse than their male counterparts while rights holders are found to be less risk averse relative to subjects without fishing rights risk attitudes are found to be correlated with compliance with fisheries regulations in particular a greater degree of risk aversion translates into a reduction in compliance furthermore in the case of gender female fishers and rights holders are more likely to comply with fisheries regulations

fishing revenue productivity and product choice in the alaskan pollock fishery a key element in evaluating fishery management strategies is examining their effects on the economic performance of fishery participants yet nearly all empirical studies of fisheries focus exclusively on the amount of fish harvested the economic benefits derived from fish stocks involve the amount of revenue generated from fish processing which is linked to both the way fish are harvested and the products produced from the fish in this study we econometrically estimate a flexible revenue function for catcher processor vessels operating in the alaskan pollock fishery recognizing potential endogeneity and a variety of fishing inputs and conditions we find significant own price supply responses and product substitutability and enhanced revenues from increased fishing days and tow duration after a regulatory change introduced property rights through a new fishing cooperative we also find significant growth in economic productivity or higher revenues over time after controlling for observed productive factors and price changes which exceeds that attributable to increased harvest these patterns suggest that the move to rights based management has contributed significantly to economic performance in the pollock fishery

efficiency wage models of unemployment keynesian economists hold it to be self evident that business cycles are characterized by involuntary unemployment but construction of a model of the cycle with involuntary unemployment faces the obvious difficulty of explaining why the labor market does not clear involuntarily unemployed people by definition want to work at less than the going wage rate why don t firms cut wages thereby increasing profits

adjustment cost and supply response in a fishery a dynamic revenue function in industries where firms can adjust product mix in response to price changes the process can be delayed by adjustment costs an example is fishermen who change fishing grounds to target different species if adjustment costs are sufficiently large this may hamper the fishermen s response so that regulatory tools that are not efficient in the long run are useful in the short run moreover adjustment costs can influence the choice of species targeted in this paper dynamic supply equations are specified using a revenue function approach different hypotheses about the dynamics of the supply equations are tested for norwegian trawlers

public regulation and the structure of production in multiproduct industries an application to the new england otter trawl industry this article considers the problem of managing multispecies fishing industries as one of regulating the production of individual multiproduct firms the multispecies new england otter trawl industry is examined within this framework empirical results derived from estimating a multiproduct profitfunction indicate that management consistent with the structures ofmultiproduct production and costs would directly regulate inputs little support is provided for applying the traditional bioeconomic model to the fishery studied

individual transferable quotes in a multiproduct common property industry this paper extends the method of virtual prices for quantity constraints to provide inverse derived demand functions for quotas and quota market equilibrium and pricing the approach is applied to evaluate the anticipated effects of a potential program of individual transferable quotas addressing the ill structured property rights and market failure of a multiproduct common property fishery the results indicate that individual transferable quotas on multiple products may not generate the desired rents or achieve biological objectives owing to limitations when joint products are regulated however an individual transferable quota on a single joint product may induce industry disinvestment and reduce overcapitalization

bioeconomies of scope and the discard problem in multiple species fisheries abstract we consider the problem of multi species fisheries management when targeting individual species is costly and at sea discards of fish by fishermen are unobserved by the regulator stock conditions ecosystem interaction technological specification and relative prices under which at sea discards are acute are identified a dynamic model is developed to balance ecological interdependencies among multiple fish species and scope economies implicit in a costly targeting technology three regulatory regimes species specific harvest quotas landing taxes and revenue quotas are contrasted against a hypothetical sole owner problem an optimal plan under all regimes precludes discarding for both very low and very high levels of targeting costs first best welfare is close to that achieved through any of the regulatory regimes in general however landing taxes welfare dominate species specific quota regulation a revenue quota fares the worst

fishing effort validation and substitution possibilities among components the case study of the viii division european anchovy fishery command and control regulation programmes particularly input constraints typically fail to achieve stated objectives because fishermen may substitute unregulated for regulated inputs it is thus essential to have an understanding of the internal structure of production technology a primal formulation is used to estimate a translog production function at the vessels level that includes fishing effort and fisherman s skill the flexibility of the selected functional permits the analysis of the substitution possibilities among inputs by estimating the elasticity of substitution with no prior constraints particular attention is paid to the empirical validation of fishing effort as an aggregate input which implies either the acceptance of the joint hypothesis that inputs making up effort are weakly separable from the inputs out of the subgroup or considering that effort is an intermediate input produced by a non separable two stage technology cross sectional data from the spanish purse seine fleet op

accounting for the carbon associated with regional tourism consumption this paper examines the carbon footprint associated with tourism spending in a regional economy using an input output framework the method adopted permits an analysis of the carbon embodied in both domestically produced and imported goods and services consequent on tourism consumption in the region in this way the analysis comprises a statement of environmental externalities which can be set beside a developing tourism satellite account tsa framework and which also provides useful information on selected externalities associated with tourism consumption

minimum wage legislation in a dual labor market the paper studies the equilibrium effects of minimum wage legislation in an economy with coexisting primary and secondary labor markets owing to difficulties in monitoring relative wages and the threat of job loss play a functional role in eliciting effort from primary sector workers minimum wage laws hence affect the primary wage and employment level even if the law only binds in the secondary labor market furthermore interaction between the two sectors can also alter the secondary outcome relative to the standard analysis and has implications for participation decisions and for the level of unemployment

resource rent in individual quota fisheries traditional fisheries management schemes generate incentives for vessels to maximize catch resulting in rent dissipation and overcapacity individual vessel quota management schemes change the incentives to maximize profit and have the potential to generate resource rent and reduce capacity an interesting question is whether it is the changed incentives due to individual quota or the capacity reduction due to transferability of individual quota that is most important in generating rent in this study a cost function approach is used to model and measure rent generated and potential rent in a fishery managed with individual vessel quotas

cost structure and capacity in the norwegian pelagic fisheries the parameters of the short run cost function are estimated for three vessel types taking part in the norwegian pelagic fisheries purse seine vessels trawlers and coastal vessels the generalized translog functional form is used estimates of returns to scale are calculated and the results indicate that there are substantial economies of scale in all vessel classes it is further investigated whether excess capacity varies with vessel size and age the analysis suggests increased quotas per vessel to avoid rent dissipation with the total allowable catch given the number of participating vessels must be reduced

production in a schooling fishery the case of the north sea herring fishery the purpose of this paper is to undertake an empirical analysis of the harvest production function for the north sea herring fishery the approach of the paper is to specify a general production function where output harvest is a function of variable inputs and fixed factors in particular output elasticities and returns to scale will be analyzed moreover the effect of fisheries regulations on harvesting will be investigated the empirical work is based on cross sectional data for 1968 1971 and 1975 for empirical estimation different functional forms as well as statistical procedures are employed the empirical results indicate that there is a rising marginal product to the variable input in the fishery this somewhat surprising result which is not commonly seen in the literature and indicates that the boats operate in stage one is attributed to interactions between pre postand main season fisheries fishery regulations that were in force including total quotas and closed seasons are found to be either ineffective or causing boats to operate inefficiently in section i the fishery and the data are described while the model is specified in section ii empirical results from estimating the production function are presented in section iii while the work is briefly summarized in section iv

optimal severance pay with incomplete information this paper contrasts optimal employment contracts in a world of full information and in a world in which the worker s alternative employment possibilities cannot be observed by the firm the difference between income and severance pay that is the opportunity cost of separating will be higher in more productive states of nature with complete wage insurance no longer possible we therefore have an explanation of higher ability individuals receiving high wages in the short run in long term contracts the explanation does not rely as past explanations have done on the imperfections in bonding arrangements or in loan markets

technical efficiency effects of input controls evidence from australia s banana prawn fishery this paper provides the first ex post estimates of the effects of input controls on technical efficiency in a fishery using individual vessel data from the northern prawn fishery of australia for the years 1990 1996 and 1994 2000 stochastic production frontiers are estimated to analyse the efficiency impacts of input controls on engine and vessel size the results indicate that technical efficiency is increasing in a measure of vessel size and engine capacity that was controlled by the regulator from 1985 to 2001 and decreasing in an unregulated input gear headrope length the study shows that fishers have substituted from regulated to unregulated inputs over the period 1990 2000 and technical efficiency has declined coincident with increasing restrictions on vessel size and engine capacity the decline in technical efficiency indicates that the goal of the regulator to increase economic efficiency has not been realized

explaining non compliance in the norwegian coastal cod fishery an application of the multinomial logit establishing motive is central to the analysis of criminal behaviour this article analyses the range of motives for noncompliant behaviour among coastal cod fishermen a multinomial logit model is employed to analyse the reasons that underlie various motives the four motives compared in this study are economic technological and social and motives caused by bureaucracy and legitimacy problems the economic motive is found to be most important for coastal fishermen however the cross sectional data indicate that motives vary with fishing gear vessel length and fishermen s age the results indicate that identifying motives for noncompliant behaviour is not straightforward but is important for reducing the extent of infringements of the regulations fishermen who use gill net seine and long line for example are more often motivated to noncompliance by technical problems and bureaucracy than hand jig fishers the study suggests that in order to prevent noncompliance behaviour the authorities manageme

the lay system in commercial fisheries origin and implications abstract in most commercial fisheries the crew is remunerated via some form of the lay system under the lay system the crew is paid with a share of revenues or a share of revenues less costs naturally the presence and the functioning of the lay system are well known and accepted as one of fishery s important institutions compared with share contracts in agriculture however the lay in fisheries has garnered relatively little research this article has two goals first we provide an explanation for the existence of the lay system as an incentive mechanism to alleviate a potential team agency problem this explanation of the lay system explains anomalies such as the presence of wages in some fisheries that are odds with the theory of pure risk sharing second we show the implications of the lay system for econometric modeling of fisheries and for understanding firm behavior in general we conclude that models that fail to account explicitly for the incentive properties of shares are likely to provide poor representations of fishing firm behavior the thrust of the paper is that the formation and working of the lay system are a fundamental force in fisheries influencing firm behavior and research results in a way that has been largely ignored

trade tragedy and the commons we develop a theory of resource management where the degree to which coun tries escape the tragedy of the commons and hence the de facto property rights regime is endogenously determined three forces determine success or failure in resource management the regulator s enforcement power the extent of har vesting capacity and the ability of the resource to generate competitive returns without being extinguished the model can explain heterogeneity across coun tries and resources in the effectiveness of resource management and it predicts that changes in prices population and technology can cause transitions to better or worse management regimes jel p14 q21 q22 q23 q32 many of the world s major renewable resource stocks are in a state of decline this is true for capture fisheries for forests in developing countries and for many measures of the biosphere s health other renewable resources including many species of wildlife marine mammals and coral reefs are also under threat while poverty and government corruption are surely respon sible for some of this record particular emphasis is often placed on the potentially damaging role played by international trade this emphasis is not surprising given that natural resource products are a key export for much of the developing world and property rights over renewable resources are both difficult to define and poorly enforced but property rights are not an immutable country characteristic such as weather mineral deposits or topography they are instead market institutions developed to facilitate transactions and protect scarce resources consequently changes in prices technology and other effects of market integration may alter the de facto property rights regime and lead to impacts quite dif ferent from those predicted by existing analyses the purpose of this paper is to examine renew able resource use within a framework where the enforcement of property rights and hence the efficacy of resource management is endogenously determined we develop a theory where an existing government regulates the use of a renewable resource by a set of agents who have a right to harvest the resource could be a fishery forest stock aquifer etc and we assume it is local and therefore contained within one country the govern ment sets rules limiting harvests but agents may cheat on these allocations and risk punishment property rights are endogenous in this framework because the government must account for agents incentive to cheat as a result the effective protection for the resource or what we refer to as the de facto property rights regime may be far from perfect even though property rights would be perfectly enforced if there was no monitoring problem

improving incentives in unemployment insurance a review of recent research abstract this paper provides a review of the recent literature on how incentives in unemployment insurance can be improved we are particularly concerned with three instruments i e the duration of benefit payments or more generally the time sequencing of benefits monitoring in conjunction with sanctions and workfare our reading of the theoretical literature is that the case for imposing a penalty on less active job search is fairly solid a growing number of empirical studies including randomized experiments are in line with this conclusion

unemployment benefit duration and incentives in britain how robust is the evidence abstract recent years have seen considerable advances in the econometric treatment of micro data in models of unemployment duration this paper examines the evidence from such models concerning the effects of unemployment benefits on incentives to work in britain widely accepted results of a small but significant benefit effect are reproduced using a sample of 1 231 unemployed men however these results are only found when benefit receipt is assumed to follow a hypothetical pattern which is shown to be unrealistic and over generous when more realistic calculations of benefits are used no benefit effect is found the paper also argues that search theory is of little help in determining the choice between competing functional forms and explanatory variables results concerning benefits are shown to be sensitive to the latter