Reasons for Technical Inefficiency of Danish Baltic Sea

Using the stochastic frontier method, the level of technical efficiency is estimated for Danish trawlers fishing in the Baltic Sea. Based on the estimated coefficients for the production frontier, the level of technical efficiencies and output elasticities are cal-culated and discussed. In order to explain differences from the production frontier, an inefficiency model is estimated. An array of variables is included, and among the re-sults are that the level of technical efficiency increases with vessel size, crew size and skipper experience in the fishery. It is also found that the age of a trawler and not be-ing a full-time fisherman has a negative influence on the level of technical efficiency. Regarding management, it is found that the increased flexibility given to the trawlers in 1995 had a positive influence on the level of technical efficiency