DYNAMIC ADJUSTMENT IN DEMAND EQUATIONS

The focus of this paper is the dynamic adjustment of demand. It is shown that a dynamic specification of the demand equation provides information on: (i) the level of response to a price or expenditure change taking place instantaneously, (ii) how much the adjustment has taken place after any number of periods, and (iii) how long it takes for the price change to be fully reflected in the demand. The importance of the dynamic adjustment is shown for the import demand for fresh and frozen salmon in the European Union. The results indicate that, for these product forms, only about 10% of the adjustment from a price or expenditure change takes place instantaneously, that over 60% of the adjustment has taken place after three months, but that it takes almost a year before the change is fully reflected in the demand.Demand and Price Analysis, Resource /Energy Economics and Policy,

Farming the Sea

During the last decades aquaculture has been one of the world’s fastest growing food production technologies. This is primarily due to increased control over the production process that has enabled innovations, productivity growth, and reduced production costs. Compared to agriculture, production technology, research, and development in aquaculture are still not very sophisticated, and control over the production process is still limited. This implies that there still is potential for further innovations and productivity growth in aquaculture. Although one must face similar environmental challenges as agriculture, there is no doubt that intensive aquaculture can be sustainable. Moreover, increased food production from the sea can reduce pressure on marginal terrestrial land and deforestation. As the productivity potential in aquaculture is exploited, aquaculture production is set to continue its increase, and humanity will, to an increasing extent, also farm the sea.Aquaculture, farming, innovation, productivity, Food Consumption/Nutrition/Food Safety, Production Economics, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty, Q18, Q22,

TESTING THE EFFECT OF AN ANTI-DUMPING DUTY: THE US SALMON MARKET

After holding a market share of over 50% for farmed salmon in USA, the market was closed for Norwegian salmon in 1991 when a countervailing duty was imposed. The objective for U.S. farmers was to increase prices and U.S. market shares. This paper investigates whether U.S. farmers reached these goals.International Relations/Trade, Resource /Energy Economics and Policy,

TRADE DISPUTES AND PRODUCTIVITY GAINS: THE CURSE OF FARMED SALMON PRODUCTION?

International Relations/Trade, Resource /Energy Economics and Policy,

Capacity Measurement in Fisheries: What Can we Learn?

Fisheries management, capacity measurement, Resource /Energy Economics and Policy, Q22,

ALLOCATION OF FISH BETWEEN MARKETS AND PRODUCT FORMS

In this paper, we investigate the suppliers' allocation decisions between different product forms and markets using supply equations derived from a translog revenue function. This is of interest based on the hypothesis that fish processors and importers respond to changes in relative prices, diverting more fish into products or to markets where the price has risen. This can also at least partially explain the strong degree of correlation between prices of different product forms and markets that is observed in many seafood markets. An empirical analysis is carried out for cod for three main producers, Canada, Iceland, and Norway. The supply of cod exhibits substantial variation, and it is processed into a number of product forms. How the landings are allocated between product forms is then of substantial interest in itself, but also with respect to the influence of new species in the whitefish market, like pollock.Resource /Energy Economics and Policy,

MODELING PRODUCTION RISK WITH A TWO-STEP PROCEDURE

This study deals with modeling of production risk by means of a two-step procedure. In contrast to earlier studies of production risk, we do not immediately adopt restrictive functional forms for the risky production technology. We first test for the presence of production risk. If production risk is found to be present, the mean and risk functions are estimated separately. This allows the use of more flexible functional forms for both the mean and the risk functions than commonly found in the literature. An empirical application to Norwegian salmon farming, where restrictive specifications of the technology are rejected, demonstrates the validity of our approach. Presence of production risk many primary production sectors implies that this approach should be considered in productivity studies.Production Economics,

FISHERMEN'S RESPONSE TO REVENUE CHANGES: THE NORWEGIAN COASTAL MACKEREL FISHERY

Resource /Energy Economics and Policy,

PATTERNS IN THE RELATIVE PRICE FOR DIFFERENT SIZES OF FARMED FISH

Fish farming is a biological production process dependent upon biological and environmental conditions. These constraints imply that different fish farmers are likely to have a similar distribution of different sizes of fish over time. If there are no perfect substitutes for the different sizes of fish in the shortrun, this production cycle can cause different relative prices between the different sizes over the year. By studying prices for different sizes of salmon for the period 1992–98, we show that such patterns exist. This can have important implications when studying aquaculture industries and markets. We look closer at two issues — optimal harvesting decisions and aggregation.Resource /Energy Economics and Policy,