Fish Stock Endogeneity in a Harvest Function: ‘El Niño’ Effects on the Chilean Jack Mackerel Fishery

  • Julio Peña-Torres Universidad Alberto Hurtado
  • Claudio Agostini Universidad Alberto Hurtado
  • Sebastián Vergara ECLAC, United Nations

Abstract

There are several examples of pelagic fisheries that have experienced fishing collapse when facing downward abundance cycles. Improving understanding about pelagic catch’s stock dependence can help avoid new cases of fishing collapse. This paper analyses the possible endogeneity of the fish stock variable in a pelagic fishery harvest function. The harvest function is estimated using panel data and ‘El Niño’ episodes as instrumental variable for the Chilean jack mackerel biomass. This strategy produces consistent estimates of the fish biomass coefficient. The paper makes two contributions. First, it corrects for endogeneity of the fish stock variable, an issue often underestimated in empirical fishery economics. Secondly, it shows that ‘El Niño’ episodes have negative effects on the Chilean jack mackerel biomass.

Author Biographies

Julio Peña-Torres, Universidad Alberto Hurtado
Associate Professor at ILADES-Universidad Alberto Hurtado and Professorial Lecturer in Economics at Georgetown University.
Claudio Agostini, Universidad Alberto Hurtado
Assistant Professor at ILADES-Universidad Alberto Hurtado and Professorial Lecturer in Economics at Georgetown University.
Sebastián Vergara, ECLAC, United Nations
Economist at the Division of Production, Productivity and Management, Economic Commission for Latin America and the Caribbean (ECLAC), United Nations, Santiago, Chile.
How to Cite
Peña-TorresJ., Agostini, C., & Vergara, S. (1). Fish Stock Endogeneity in a Harvest Function: ‘El Niño’ Effects on the Chilean Jack Mackerel Fishery. Economic Analysis Review, 22(2), 75-99. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/73
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Articles