Munich Personal RePEc Archive

Fleet dynamics and capital malleability

Da Rocha Alvarez, Jose Maria and Prellezo, Raul and Sempere, Jaume and Taboada-Antelo, Luis (2016): Fleet dynamics and capital malleability.

[img]
Preview
PDF
MPRA_paper_75370.pdf

Download (1MB) | Preview

Abstract

When individual stay/exit decisions depend on the opportunity cost of exiting, capital malleability is endogenously determined by the instruments used for stock rehabilitation. In a General Equilibrium framework, we characterize the transitional dynamics caused by stock rehabilitation policies. We show that a management policy based on input controls generates less exit, a less productive fleet, and overcapitalization, as input controls require a higher number of firms to achieve the same biological targets. Using data from the Multiannual Plan for the Western Mediterranean, we show that the use of input controls generates a Spanish fleet around 14 percent higher than the one that would result from a non distortionary instrument.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.