RT Journal Article
SR Electronic
T1 Restoring a Fish Stock: A Dynamic Bankruptcy Problem
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 327
OP 339
DO 10.3368/le.84.2.327
VO 84
IS 2
A1 Inarra, Elena
A1 Skonhoft, Anders
YR 2008
UL http://le.uwpress.org/content/84/2/327.abstract
AB Total Allowable Catch (TAC)-regulating schemes have been introduced in most fisheries. TAC distribution following the Proportional Rule, based on historical catches, implies that harvesters or vessel groups that have captured more in the past and contributed to overfishing are getting larger quotas than groups that have contributed less to overfishing. In contrast to this rule, a more egalitarian rule, the Constrained Equal Award Rule, is proposed for distributing the TAC. Contingent upon the fishing techniques used by the harvesters, it is demonstrated how the fish-stock recovery period, harvest, and profitability may vary according to these two rules. (JEL Q22, C70)