An Empirical Analysis of Individual Fishing Quota Market Trading.

In the study, we investigate determinants of individual fishing quota (IFQ) lease price and transfer of permanent share in the General Category Scallop fishery of the Northeastern United States. A unique micro data set on individual IFQ transactions and related vessel-level fishing profit information for the six-year time period, fishing years 2010–2015, was used to estimate models of aggregate IFQ lease markets and individual transactions. We find that IFQ lease price is affected by the marginal profit of scallop fishing as well as macro-economic conditions. Results of the analysis also suggest that the price for IFQ asset transfers captures the capitalized profits in the fishery over time. Overall, IFQ market performance is in general agreement with economic theory. [ABSTRACT FROM AUTHOR]