Table 2 Percentage reductions in TAC that yield the largest increase in rent, value-added, and aggregate welfare in different simulations and with different values of parameters or elasticities
Simulations | Value of parameter/elasticity | Rent in mackerel sector | Value-added in mackerel sector | Aggregate welfare | ||||
|---|---|---|---|---|---|---|---|---|
% Reduction | Number of years taken | % Reduction | Number of years taken | % reduction | Number of years taken | |||
Baseline simulation | 70 | 4 | 35 | 6 | 20 | 8 | ||
Sensitivity analyses | Growth rate in logistic function | Low | 50 | 7 | 30 | 9 | 20 | 12 |
High | 65 | 3 | 40 | 4 | 25 | 5 | ||
Initial ratio of biomass to carrying capacity | Low | 50 | 6 | 45 | 6 | 25 | 8 | |
High | 75 | 3 | 30 | 5 | 25 | 6 | ||
Discount rate | Low | 70 | 4 | 45 | 5 | 25 | 7 | |
High | 45 | 5 | 30 | 6 | 20 | 8 | ||
Import supply/export demand elasticity | Low | 70 | 4 | 35 | 6 | 20 | 8 | |
High | 70 | 4 | 40 | 5 | 30 | 6 | ||
Elasticity of substitution in Armington function (level 1) | Low | 70 | 4 | 35 | 6 | 20 | 8 | |
High | 70 | 4 | 35 | 6 | 25 | 7 | ||
Elasticity of substitution in Armington function (level 2) | Low | 70 | 4 | 45 | 5 | 20 | 8 | |
High | 70 | 4 | 35 | 6 | 25 | 7 | ||
Elasticity of substitution in household consumption | Low | 70 | 4 | 35 | 6 | 30 | 6 | |
High | 70 | 4 | 35 | 6 | 20 | 8 | ||
Factor mobility | Closed | 70 | 4 | 35 | 6 | 35 | 6 | |
Open | 70 | 4 | 35 | 6 | 20 | 8 | ||
