|dc.description.abstract||This thesis contains a study of cost structures through a cost minimisation approach.
Estimations reveal predicted u-shaped unit cost functions for three types of vessels
participating in the Norwegian pelagic fisheries: coastal vessels, purse seiners and pelagic
trawlers. Interaction terms on defined vessel groups identify relative advantages in the unit
cost of the most important species. Through a cost minimisation problem, we assess the
potential for reductions in variable costs. The data origins from the profitability surveys
conducted by the Norwegian Directorate of Fisheries in the period 2000-2014.
The estimated cost functions take a polynomial form. Such a functional form is sufficiently
flexible to estimate/fit a u-shaped unit cost function. OLS analyses reveal the predicted longrun
cost curve for several of the species included in the estimation. For the coastal vessels,
these are herring, capelin and cod and pollock. In the combined fleet of purse seiners and
pelagic trawlers, we find the predicted non-linear specification of costs for blue whiting and
capelin. For both fleets, a linear relationship describes the underlying structure between
variable costs and output of mackerel in the final specification. This specification applies
also to the output of herring in the case of purse seiners and pelagic trawlers. These
differences in the predicted relationships seem consistent with the structure of the data.
We find a potential reduction of variable costs of NOK 10.5 billion in the optimal solution to
the cost minimisation problem. This amount serves as an indication of the costs of certain
regulations within the management system in the period. Our optimal solution disregards
policy constraints such as redistribution of catches between vessel groups.||nb_NO