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An Empirical Comparison of Systems of Demand Equations for Tourist Expenditures in Resort Destinations

Author

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  • Edwin T. Fujii

    (Department of Economics, University of Hawaii)

  • Mohammed Khaled

    (Department of Economics, University of Hawaii)

  • James Mak

    (Department of Economics, University of Hawaii)

Abstract

In this paper, we employ the systems approach to the estimation of demand equations. We model visitor expenditures on six different categories of goods at a major resort destination,Hawaii.This study breaks new ground in several respects: (a) we apply systems estimation techniques to a new area -- detailed budget data on visitor expenditures at a given resort destination, (b) we compare elasticities generated by the linear expenditure system and the Rotterdam model with the almost ideal demand system, a new functional form that has not been extensively tested empirically, and (c) we improve on a method suggested by Parks to measure goodness of fit in the Rotterdam model.

Suggested Citation

  • Edwin T. Fujii & Mohammed Khaled & James Mak, 1987. "An Empirical Comparison of Systems of Demand Equations for Tourist Expenditures in Resort Destinations," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 24(1&2), pages 79-102, March & J.
    • Handle: RePEc:phs:prejrn:v:24:y:1987:i:1&2:p:79-102
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/download/298/407
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    Cited by:

    1. Roberto Patuelli & Maurizio Mussoni & Guido Candela, 2016. "The Effects of World Heritage Sites on Domestic Tourism: A Spatial Interaction Model for Italy," Advances in Spatial Science, in: Roberto Patuelli & Giuseppe Arbia (ed.), Spatial Econometric Interaction Modelling, chapter 0, pages 281-315, Springer.
    2. Khurram SHAHZAD* & Muhammad Nadeem SARWAR**, 2018. "Analysis of Food Demand Patterns of Sindh Province, Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 147-168.

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