The Journal of Fisheries Business Administration (수산경영론집)

The Korean Society of Fisheries Business Administration (한국수산경영학회)
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A Study on the Choice of Price Formation Models for Fishery Resources

수산자원의 가격형성모형의 선택에 관한 연구

  • Park, Hoan-Jae (Department of International trade, Catholic University of Daegu)
  • 박환재 (대구가톨릭대학교 무역학과)
  • Received : 2013.03.08
  • Accepted : 2013.06.19
  • Published : 2013.06.30
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Abstract

The purpose of this paper is to integrate various models of price formation and let the data choose the most proper model. After the data choose the proper model, one can analyze the price formation process and demand structures for fishery resources under the restriction of Korean fisheries regulations. This study suggests the integrated model including quasi-linear price formation model, Translog price formation model, AIDS price formation model and Lewbel price formation model as level variables. It also suggests another integrated model including AIDS price formation model, Rotterdam price formation model, Latinen-Theil price formation model and Neves price formation model as difference variables. The empirical results show that the AIDS price formation model is the most preferred in both level and difference variables of fishery resources. The estimated parameters show that all sample species have (-) sign of price flexibilities, thus following the law of demand. The scale flexibilities of all species are estimated as (-) sign, thus being adapted to the theory. The contribution and results are summarized as follows. First, the integrated model of fishery market demand has been developed and the data can choose the proper model without arbitrary choice of the researcher. Second, the fishery market demand structure could be analyzed in a way different from the ordinary demand analysis, which is based upon price flexibility and scale flexibility. Third, the integrated model for fishery resources can be used easily when catching restrictions are imposed by policies.

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References

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