Factors Affecting Technical Efficiency in Fisheries: Stochastic Production Frontier 'v' Data Envelopment Analysis approaches

Research PaperTechnical efficiency (TE) measures the relationship between a vessel’s inputs to the fishing process and its outputs, with full efficiency being achieved when outputs are maximised from a given set of inputs. Inputs can be physical (e.g. the vessel, gear, engine, onboard equipment, etc.), flexible (time spent fishing, size of crew) and also heavily influenced by skipper skill. Finally, there will always be an element of luck and other unaccountable factors involved. TE scores can be calculated using the econometric Stochastic Production Frontier (SPF) or the non-stochastic, linear-programming Data Envelopment Analysis (DEA) methodologies. This paper compares the results of both techniques for segments of the English Channel fisheries. The influence of factors most affecting technical efficiency is also analysed using an SPF inefficiency model and tobit regression of DEA-derived scores. Such factors include vessel and skipper characteristics. It is argued that DEA can be used as an alternative to SPF techniques when there is difficulty specifying the correct SPF model. There is consistency in results of factors affecting TE between SPF and DEA analyses