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Distributional Welfare Impacts of Public Spending: The Case of Urban versus National Parks

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  • Feinerman, Eli
  • Fleischer, Aliza
  • Simhon, Avi
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    Abstract

    This study examines the optimal allocation of funds between national and urban parks. Since travel costs to national parks are significantly higher than to urban parks, poor households tend to visit the latter more frequently, whereas rich households favor the former. Therefore, allocating public funds to improving the quality of national parks at the expense of urban parks disproportionately benefits high income households. By developing a theoretical model and implementing it using Israeli data, findings indicate all households, except for the richest decile, prefer that the park authority divert a larger proportion of its budget from national to urban parks.

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    File URL: http://purl.umn.edu/31105
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    Bibliographic Info

    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

    Volume (Year): 29 (2004)
    Issue (Month): 02 (August)
    Pages:

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    Handle: RePEc:ags:jlaare:31105

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    Web page: http://waeaonline.org/
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    Related research

    Keywords: budget allocation; income distribution; national parks; urban parks; Public Economics;

    References

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    1. Joseph G. Altonji & Christina H. Paxson, 1986. "Job Characteristics and Hours of Work," NBER Working Papers 1895, National Bureau of Economic Research, Inc.
    2. Kling, Catherine L., 1988. "Comparing welfare estimates of environmental quality changes from recreation demand models," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 331-340, September.
    3. Feather, Peter & Shaw, W. Douglass, 1998. "Estimating The Cost Of Leisure Time For Recreation Demand Models," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20855, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Biddle, Jeff E & Zarkin, Gary A, 1989. "Choice among Wage-Hours Packages: An Empirical Investigation of Male Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 415-37, October.
    5. Timothy C. Haab & Kenneth E. McConnell, 1996. "Count Data Models and the Problem of Zeros in Recreation Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 89-102.
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    Cited by:
    1. Anni Huhtala & Eija Pouta, 2009. "Benefit Incidence of Public Recreation Areas—Have the Winners Taken Almost All?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(1), pages 63-79, May.
    2. Huhtala, Anni & Pouta, Eija, 2006. "Discerning welfare impacts of public provision of recreation areas," Discussion Papers 11860, MTT Agrifood Research Finland.

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