1Department of Fisheries and Marine Environment, Australian Maritime College, P.O. Box 21, Beaconsfield, Tasmania, 7270, Australia. E-mail: s.bose@fme.amc.edu.au
2Department of Economics, University of Queensland, Brisbane, Queensland, 4072, Australia
This paper investigates the price relationships in the market for the major species of the Australian South-East Fishery (SEF) using a multivariate time series approach. Using the Johansen cointegration test it is found that 12 cointegrating vectors (long run relationships) exist between the price series at the five percent significance level, suggesting that demand for the 16 major species of the (SEF) should be treated as a single, integrated market. The short-run dynamics of the price series in the system are examined using impulse-response function analysis on a vector autoregressive model in levels. This facilitates an examination of whether one species is a substitute for, or a complement to another species within the framework of a demand system of all the species together. This information is important for management of the SEF through the setting of total allowable catches and individual transferable catch quotas.
South-East fishery, quota species, impulse response function, substitutes and complements
