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A bivariate count data model for household tourism demand

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  • Jörgen Hellström

    (Department of Economics, Umeå University, Sweden)

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    Abstract

    Households' choice of the number of leisure trips and the total number of overnight stays is empirically studied using Swedish tourism data. A bivariate hurdle approach separating the participation (to travel and stay the night or not) from the quantity (the number of trips and nights) decision is employed. The quantity decision is modelled with a bivariate mixed Poisson lognormal model allowing for both positive as well as negative correlation between count variables. The observed endogenous variables are drawn from a truncated density and estimation is pursued by simulated maximum likelihood. The estimation results indicate a negative correlation between the number of trips and nights. In most cases own price effects are as expected negative, while estimates of cross-price effects vary between samples. Copyright © 2005 John Wiley & Sons, Ltd.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

    Volume (Year): 21 (2006)
    Issue (Month): 2 ()
    Pages: 213-226

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    Handle: RePEc:jae:japmet:v:21:y:2006:i:2:p:213-226

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    1. Matthew D. Berman & Hong Jin Kim, 1999. "Endogenous On-Site Time in the Recreation Demand Model," Land Economics, University of Wisconsin Press, vol. 75(4), pages 603-619.
    2. Caudill, Steven B & Mixon, Franklin G, Jr, 1995. "Modeling Household Fertility Decisions: Estimation and Testing of Censored Regression Models for Count Data," Empirical Economics, Springer, vol. 20(2), pages 183-96.
    3. McFadden, Daniel, 1989. "A Method of Simulated Moments for Estimation of Discrete Response Models without Numerical Integration," Econometrica, Econometric Society, vol. 57(5), pages 995-1026, September.
    4. Berman, Matthew D. & Kim, Hong Jin, 1999. "Endogenous On-Site Time In The Recreation Demand Model," 1999 Annual meeting, August 8-11, Nashville, TN 21616, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    6. Francisco Covas & J.M.C. Santos Silva, 2000. "A modified hurdle model for completed fertility," Journal of Population Economics, Springer, vol. 13(2), pages 173-188.
    7. Shaw, Daigee, 1988. "On-site samples' regression : Problems of non-negative integers, truncation, and endogenous stratification," Journal of Econometrics, Elsevier, vol. 37(2), pages 211-223, February.
    8. Douglas M. Larson, 1993. "Joint Recreation Choices and Implied Values of Time," Land Economics, University of Wisconsin Press, vol. 69(3), pages 270-286.
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    Cited by:
    1. Terence Chai Cheng, 2011. "Measuring the Effects of Removing Subsidies for Private Insurance on Public Expenditure for Health Care," Melbourne Institute Working Paper Series wp2011n26, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Klaus Moeltner & James J. Murphy & John K. Stranlund & Maria Alejandra Velez, 2007. "Processing Data from Social Dilemma Experiments: A Bayesian Comparison of Parametric Estimators," Working Papers 07-013, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics.
    3. Terence Chai Cheng & Farshid Vahid, 2011. "Demand for Hospital Care and Private Health Insurance in a Mixed Public–Private System: Empirical Evidence Using a Simultaneous Equation Modeling Approach," Melbourne Institute Working Paper Series wp2011n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Esther Martínez-García & Josep María Raya, 2009. "Determinantes de la demanda temporal de turismo: una aproximación microeconómica con un modelo de duración," Investigaciones Economicas, Fundación SEPI, vol. 33(2), pages 271-302, May.
    5. repec:ebl:ecbull:v:3:y:2007:i:11:p:1-10 is not listed on IDEAS
    6. Shiferaw Gurmu & John Elder, 2007. "A simple bivariate count data regression model," Economics Bulletin, AccessEcon, vol. 3(11), pages 1-10.
    7. JG. Brida & M. Meleddu & M. Pulina, 2011. "Museum visitors can be regarded as specific cultural tourists? A length of stay analysis," Working Paper CRENoS 201114, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    8. Gurmu, Shiferaw & Elder, John, 2008. "A bivariate zero-inflated count data regression model with unrestricted correlation," Economics Letters, Elsevier, vol. 100(2), pages 245-248, August.

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