Has the European Structural Fisheries Policy Influenced on the Second Hand Market of Fishing Vessels1? Ikerne del Valle*, Kepa Astorkiza,* and Inmaculada Astorkiza*2 * Department of Applied Economics V. University of The Basque Country (UPV-EHU) Avda. Lehendakari Agirre No. 83, 48015 Bilbao, Spain [email protected] Abstract. The main objective of this paper is to analyze the potential effects that the principal instrument of European structural fisheries policy, that is the Multi-Annual Guidance Plans (MAGP), may have exercised in the second hand market of fishing vessels. In order to test the starting hypothesis that the shortage generated in the periods with the most significant and radical capacity adjustment may have influenced increases on prices of vessels, the main determinants of the second hand market of fishing vessels are analyzed by estimating and discriminating among alternative hedonic price models, such as the linear, log-linear, semi-log, mixed semi-log, TRANSLOG or Box-Cox. Especial attention is paid not only to the correct specification of the numerical variables by carrying out a battery of tests to discriminate among alternative non-nested models, but also to checking for structural change and the convenience of using alternative estimation methods including OLS, weighted least squares (WLS) and trimmed least squares (TLS), based on heteroskedasticity and OLS regression diagnostic. Pooled data is available for 228 transactions taking place during the period 1985-2005 for the Basque artisan and trawling fleets. The principal results achieved indicate that the higher increase of prices precisely happens under the MAGP with major capacity adjustment. Keywords: European Fisheries Policy, Second Hand Market of Fishing Vessels, Hedonic Model.