Fishermen's discount rates in ITQ systems

In this paper the fishermen's planning and investment horizon is investigat ed using their discount rates. It is shown that one might calculate the imp licit discount rate in an ITQ regulated fishery from the available informat ion from the quota market. This gives information about how well the system is working. In particular, discount rates where ITQ systems are in operati on initially were very high, before they started to decrease. This implies that it take some time to reap the full benefits of an ITQ system. It also gives arguments for not letting ITQs be perpetual property rights, and henc e, enables more flexibility in the management system.