Asset pricing in created markets.

significant significant Fish stock effects -- Jointly

significant Year effects Jointly Jointly

significant significant Constant term 3.588 *** 3.567 ***

(0.205) (1.320) Number of quarterly observations 4,120 4,120 Number of panels (quota markets) 152 152 [R.sup.2] 0.78 0.77 Variables (iii) (iv)

Random

Between Effects Logged lease price 0.764 *** 0.834 ***

(instrumented) (ln [pi]) (0.046) (0.036) Interest rate (ln(1 + r)) -3.708**

(1.746) Natural mortality rate (1n [theta]) -0.382 * -0.331**

(0.209) (0.167) Growth in output prices (ln(1 + g)) 3.969 ** 3.641 **

(1.649) (1.334) Normalized percentage of quota 0.012

sold (s) (0.011) Fisheries with initial reductions in 0.192 ** 0.124 *

TAC (a) (dummy variable) (0.077) (0.074) Interaction of time with variable 0.007

indicating fisheries with initial (0.006)

reductions in TAC (a x t) Shellfish (dummy variable) 0.592 *** 0.317 ***

(0.155) (0.124) Seasonal effects -- Jointly

significant Fish stock effects -- -- Year effects -- Jointly

significant Constant term 3.853 *** 3.644 ***

(0.284) (0.266) Number of quarterly observations 4,120 4,120 Number of panels (quota markets) 152 152 [R.sup.2] 0.78 0.79 Note: The dependent variable is the logged average quarterly asset price. Standard errors are shown in parentheses. Triple asterisk (***) indicate significance at the 1% level, double (**) at the 5% level, and single (*) at the l0% level. The data are a panel of observations for species- and region-differentiated quota markets over 14 years. The logged lease price is instrumented using the logged export price and all other regressors. The estimation method is indicated above each column.