Bayesian hierarchical estimationof technical efficiency in a fishery

This article presents a Bayesian hierarchical approach to estimating stochastic production frontiers in fisheries. Based on our application of this approach to the US West Coast hake fishery, we conclude that (1) panel models with hierarchical structure to allow for boat- and year-specific efficiency measures are preferable to simpler specifications, and (2) there appears to have been a progressive outward shift in the efficient frontier in the shore-based hake fishery during 1987-2003.