Economic capacity estimation in fisheries: A non-parametric ray approach

Data envelopment analysis (DEA) has generally been adopted as the most appropriate methodology for the estimation of fishing capacity, particularly in multi-species fisheries. More recently, economic DEA methods have been developed that incorporate the costs and benefits of increasing capacity utilisation. One such method was applied to estimate the capacity utilisation and output of the Scottish fleet. By comparing the results of the economic and traditional DEA approaches, it can be concluded that many fleet segments are operating at or close to full capacity, and that the vessels defining the frontier are operating consistent with profit maximising behaviour.