PT  - JOURNAL ARTICLE
AU  - Matthew N. Reimer
AU  - Joshua K. Abbott
AU  - James E. Wilen
TI  - Unraveling the Multiple Margins of Rent Generation from Individual Transferable Quotas
AID  - 10.3368/le.90.3.538
DP  - 2014 Aug 01
TA  - Land Economics
PG  - 538--559
VI  - 90
IP  - 3
4099  - http://le.uwpress.org/content/90/3/538.short
4100  - http://le.uwpress.org/content/90/3/538.full
SO  - Land Econ2014 Aug 01; 90
AB  - Individual transferable quotas (ITQs) induce changes along both the extensive margin—via consolidation of quota among fewer vessels—and the intensive margin, as harvesters adjust their behavior to ITQ incentives. We use ITQ introduction in the Bering Sea crab fishery to decompose the sources of rent generation across both margins. We embed an empirically calibrated structural model of the harvesting process into a sector-level model, allowing us to experimentally “unravel” the ITQ treatment. We show that the magnitude and source of rent generation under ITQs critically depends on the manner and degree of rent dissipation before ITQs are implemented. (JEL Q22, Q28)