efficiency obtained by using the FSAE as opposed to the ordinary least

squares with dummy variables (OLSDV) estimator.

 An examination of the parameter estimates obtained from the two

estimators indicates that both estimators yield parameter values of

similar magnitude with the exception of the parameter estimate for

vessel size (Tables 1 and 2). Furthermore, both estimators yield

parameter estimates of reasonable magnitude and the expected sign. The

gains from using the systems estimator become apparent when the standard

errors of the parameter estimates are examined. All standard errors

obtained utilizing the FSAE are substantially lower than the correspond-

ing estimated standard errors obtained from the OLSDV estimator with the
 1
exception of the standard error of the vessel size parameter. Finally,

examination of the estimated autoregressive parameters illustrates that

the estimated equations for all states, except Louisiana, are charac-

terized by significant first order autoregression (Table 2).

 This brief comparison of estimators for the reef fishery catch

equations gives considerable support to the a priori specifications of

the preceding chapter. Given the small sample size employed, the gains

in efficiency obtained by the FSAE coupled with the reasonable magnitude

of the estimated parameters and the strong presence of autoregression,

serve to give heuristic confirmation of the overall specification and

choice of estimator in deriving the empirical catch equations for the

GMRFF.


 It should be noted that the slight increase in the standard error
 of the vessel size parameter must be considered in light of the fact
 that the FSAE estimate is approximately three times larger than the
 OLSDV estimate.