Economics Commons^™

Revenue-Based Capacity Utilisation Measures And Decomposition: The Case Of Danish North Sea Trawlers, Erik Lindebo, Ayoe Hoff, Niels Vestergaard

Niels Vestergaard

In fisheries, capacity analysis has largely been limited to measuring physical capacity, defined as the maximum amount of output that can be produced per unit of time, given existing plant and equipment and unrestricted availability of variable inputs. An economic measure of capacity can be defined as the maximum revenue attainable for the given fixed inputs, using relevant outputs and output prices. This paper examines these two approaches to capacity by applying data envelopment analysis to physical and economic input/output data for Danish North Sea trawlers. The economic and physical measures are compared and contrasted using correlation analysis. An innovative …