IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v29y2023i3p718-741.html
   My bibliography  Save this article

Modeling censored tourism expenditures in Turkey with non-normal and heteroscedastic errors: An application of the inverse hyperbolic sine double-hurdle model

Author

Listed:
  • Faruk Urak
  • Nihat Küçük
  • Abdulbaki Bilgiç
  • Steven T Yen

Abstract

Censoring, extreme values, and non-normal distribution are common features in microdata. These data features can compromise the statistical distributions of the estimators when an appropriate model is not used. We use an inverse hyperbolic sine (IHS) transformation in the double-hurdle (DH) model to accommodate extreme values and skewness in censored accommodation spending among Turkish households. The full-parameterized model nests many restricted specifications which do not accommodate dependence, heteroscedasticity, and non-normality in the error terms. Statistical test results support the use of the fully parameterized dependent IHS-DH specification. The statistically significant correlation between the binary and level decisions of accommodation precludes the use of a model with a two-step structure. Some of the findings in our study have a determining or driving force in expressing causality relationship in monthly accommodation probability and level decisions. The study made also prudent policy recommendations about what the results might mean to policymakers and stakeholders.

Suggested Citation

  • Faruk Urak & Nihat Küçük & Abdulbaki Bilgiç & Steven T Yen, 2023. "Modeling censored tourism expenditures in Turkey with non-normal and heteroscedastic errors: An application of the inverse hyperbolic sine double-hurdle model," Tourism Economics, , vol. 29(3), pages 718-741, May.
    • Handle: RePEc:sae:toueco:v:29:y:2023:i:3:p:718-741
    DOI: 10.1177/13548166211067191
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/13548166211067191
    Download Restriction: no
    File URL: https://libkey.io/10.1177/13548166211067191?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Juan Gabriel Brida & Marta Disegna & Raffaele Scuderi, 2013. "Visitors to Two Types of Museums: Do Expenditure Patterns Differ?," Tourism Economics, , vol. 19(5), pages 1027-1047, October.
    2. Carboni, Oliviero A., 2012. "An empirical investigation of the determinants of R&D cooperation: An application of the inverse hyperbolic sine transformation," Research in Economics, Elsevier, vol. 66(2), pages 131-141.
    3. Joaquín Alegre & Magdalena Cladera & Maria Sard, 2011. "Analysing the Influence of Tourist Motivations on Tourist Expenditure at a Sun-And-Sand Destination," Tourism Economics, , vol. 17(4), pages 813-832, August.
    4. Bernini, Cristina & Cracolici, Maria Francesca, 2015. "Demographic change, tourism expenditure and life cycle behaviour," Tourism Management, Elsevier, vol. 47(C), pages 191-205.
    5. Gunwoo Lee & Min-Kyu Lee, 2017. "Estimation of the shore excursion expenditure function during cruise tourism in Korea," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(4), pages 524-535, May.
    6. Maddala, G S, 1983. "Methods of Estimation for Models of Markets with Bounded Price Variation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(2), pages 361-378, June.
    7. Marrocu, Emanuela & Paci, Raffaele & Zara, Andrea, 2015. "Micro-economic determinants of tourist expenditure: A quantile regression approach," Tourism Management, Elsevier, vol. 50(C), pages 13-30.
    8. Cristina Bernini & Maria Francesca Cracolici, 2016. "Is Participation in the Tourism Market an Opportunity for Everyone? Some Evidence from Italy," Tourism Economics, , vol. 22(1), pages 57-79, February.
    9. Steven T. Yen & Andrew M. Jones, 1997. "Household Consumption of Cheese: An Inverse Hyperbolic Sine Double-Hurdle Model with Dependent Errors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 246-251.
    10. Blundell, Richard, 1988. "Consumer Behaviour: Theory and Empirical Evidence--a Survey," Economic Journal, Royal Economic Society, vol. 98(389), pages 16-65, March.
    11. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    12. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    13. Juan Gabriel Brida & Marta Disegna & Linda Osti, 2013. "Visitors' Expenditure Behaviour at Cultural Events: The Case of Christmas Markets," Tourism Economics, , vol. 19(5), pages 1173-1196, October.
    14. Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
    15. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    16. Alegre, Joaquín & Mateo, Sara & Pou, Llorenç, 2010. "An analysis of households' appraisal of their budget constraints for potential participation in tourism," Tourism Management, Elsevier, vol. 31(1), pages 45-56.
    17. Rashidi, Taha H. & Koo, Tay T.R., 2016. "An analysis on travel party composition and expenditure: a discrete-continuous model," Annals of Tourism Research, Elsevier, vol. 56(C), pages 48-64.
    18. Chanda, Anup & Maddala, G. S., 1983. "Methods of estimation for models of markets with bounded price variation under rational expectations," Economics Letters, Elsevier, vol. 13(2-3), pages 181-184.
    19. Juan Eugenio-Martin & Juan Campos-Soria, 2011. "Income and the substitution pattern between domestic and international tourism demand," Applied Economics, Taylor & Francis Journals, vol. 43(20), pages 2519-2531.
    20. Lin, Vera Shanshan & Mao, Rui & Song, Haiyan, 2015. "Tourism expenditure patterns in China," Annals of Tourism Research, Elsevier, vol. 54(C), pages 100-117.
    21. Thrane, Christer & Farstad, Eivind, 2011. "Domestic tourism expenditures: The non-linear effects of length of stay and travel party size," Tourism Management, Elsevier, vol. 32(1), pages 46-52.
    22. Ruben Loon & Jan Rouwendal, 2017. "Travel purpose and expenditure patterns in city tourism: evidence from the Amsterdam Metropolitan Area," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(2), pages 109-127, May.
    23. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    24. Pence Karen M., 2006. "The Role of Wealth Transformations: An Application to Estimating the Effect of Tax Incentives on Saving," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-26, July.
    25. Jones, Andrew M & Yen, Steven T, 2000. "A Box-Cox Double-Hurdle Model," Manchester School, University of Manchester, vol. 68(2), pages 203-221, March.
    26. Marta Disegna & Linda Osti, 2016. "Tourists' Expenditure Behaviour: The Influence of Satisfaction and the Dependence of Spending Categories," Tourism Economics, , vol. 22(1), pages 5-30, February.
    27. Brown, Sarah & Greene, William H. & Harris, Mark N. & Taylor, Karl, 2015. "An inverse hyperbolic sine heteroskedastic latent class panel tobit model: An application to modelling charitable donations," Economic Modelling, Elsevier, vol. 50(C), pages 228-236.
    28. Su, Shew-Jiuan B & Yen, Steven T, 1996. "Microeconometric Models of Infrequently Purchased Goods: An Application to Household Pork Consumption," Empirical Economics, Springer, vol. 21(4), pages 513-533.
    29. Joaquín Alegre & Llorenç Pou, 2004. "Micro-Economic Determinants of the Probability of Tourism Consumption," Tourism Economics, , vol. 10(2), pages 125-144, June.
    30. Juan Brida & Juan Pereyra & Raffaele Scuderi, 2014. "Repeat tourism in Uruguay: modelling truncated distributions of count data," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(1), pages 475-491, January.
    31. Joaquín Alegre & Magdalena Cladera, 2010. "Tourist Expenditure and Quality: Why Repeat Tourists Can Spend Less than First-Timers," Tourism Economics, , vol. 16(3), pages 517-533, September.
    32. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    33. MarÅ¡enka Marksel & Polona Tominc & Stane BožiÄ nik, 2017. "Cruise passengers’ expenditures," Tourism Economics, , vol. 23(4), pages 890-897, June.
    34. Alegre, Joaquín & Mateo, Sara & Pou, Llorenç, 2013. "Tourism participation and expenditure by Spanish households: The effects of the economic crisis and unemployment," Tourism Management, Elsevier, vol. 39(C), pages 37-49.
    35. Engle, Robert F., 1984. "Wald, likelihood ratio, and Lagrange multiplier tests in econometrics," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 13, pages 775-826, Elsevier.
    36. Sun, Minghui & Zhang, Xiaoyu & Ryan, Chris, 2015. "Perceiving tourist destination landscapes through Chinese eyes: The case of South Island, New Zealand," Tourism Management, Elsevier, vol. 46(C), pages 582-595.
    37. Juan Gabriel Brida & Daniel Bukstein & Emiliano Tealde, 2015. "Exploring cruise ship passenger spending patterns in two Uruguayan ports of call," Current Issues in Tourism, Taylor & Francis Journals, vol. 18(7), pages 684-700, July.
    38. Christer Thrane, 2015. "Research Note: Does Method of Payment Affect Total Trip Expenditure?," Tourism Economics, , vol. 21(3), pages 669-676, June.
    39. Lee, Lung-Fei & Maddala, G S, 1985. "The Common Structure of Tests for Selectivity Bias, Serial Correlation, Heteroscedaticity, and Non-normality in the Tobit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 1-20, February.
    40. Christer Thrane, 2014. "Modelling Micro-Level Tourism Expenditure: Recommendations on the Choice of Independent Variables, Functional Form and Estimation Technique," Tourism Economics, , vol. 20(1), pages 51-60, February.
    41. Zhang, Hui & Zhang, Junyi & Kuwano, Masashi, 2012. "An integrated model of tourists’ time use and expenditure behaviour with self-selection based on a fully nested Archimedean copula function," Tourism Management, Elsevier, vol. 33(6), pages 1562-1573.
    42. Christer Thrane, 2015. "On the Relationship between Length of Stay and Total Trip Expenditures: A Case Study of Instrumental Variable (IV) Regression Analysis," Tourism Economics, , vol. 21(2), pages 357-367, April.
    43. Chuanyong Zhang & Guoliang Feng, 2018. "More wealth, less leisure? Effect of housing wealth on tourism expenditure in China," Tourism Economics, , vol. 24(5), pages 526-540, August.
    44. Thanos Mergoupis & Max Steuer, 2003. "Holiday taking and income," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 269-284.
    45. Cristina Bernini & Maria Francesca Cracolici & Peter Nijkamp, 2017. "Place-Based Attributes And Spatial Expenditure Behavior In Tourism," Journal of Regional Science, Wiley Blackwell, vol. 57(2), pages 218-244, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierpaolo D’Urso & Marta Disegna & Riccardo Massari, 2020. "Satisfaction and Tourism Expenditure Behaviour," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 1081-1106, June.
    2. Jorge V Pérez-Rodríguez & Francisco Ledesma-Rodríguez, 2021. "Unconditional quantile regression and tourism expenditure: The case of the Canary Islands," Tourism Economics, , vol. 27(4), pages 626-648, June.
    3. Massidda, Carla & Piras, Romano & Seetaram, Neelu, 2020. "A Microeconomics Analysis of the Per Diem Expenditure of British Travellers," Annals of Tourism Research, Elsevier, vol. 82(C).
    4. Bernini, Cristina & Cracolici, Maria Francesca, 2015. "Demographic change, tourism expenditure and life cycle behaviour," Tourism Management, Elsevier, vol. 47(C), pages 191-205.
    5. Chih-Wen Yang & Cheng-Lung (Richard) Wu & Jin-Long Lu, 2021. "Exploring the interdependency and determinants of tourism participation, expenditure, and duration: An analysis of Taiwanese citizens traveling abroad," Tourism Economics, , vol. 27(4), pages 649-669, June.
    6. Cristina Bernini & Maria Francesca Cracolici, 2014. "Is Participation in Tourism Market an Opportunity for Everyone? Some Evidence from Italy," Working Papers 2014.17, Fondazione Eni Enrico Mattei.
    7. Brida, Juan Gabriel & Scuderi, Raffaele, 2012. "Determinants of tourist expenditure: a review of microeconometric models," MPRA Paper 38468, University Library of Munich, Germany.
    8. Gómez–Déniz, E. & Pérez–Rodríguez, J.V., 2019. "Modelling distribution of aggregate expenditure on tourism," Economic Modelling, Elsevier, vol. 78(C), pages 293-308.
    9. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2463-2476.
    10. Cristina Bernini & Maria Francesca Cracolici & Peter Nijkamp, 2020. "Micro and Macro Resilience Measures of an Economic Crisis," Networks and Spatial Economics, Springer, vol. 20(1), pages 47-71, March.
    11. Mayer Marius & Vogt Luisa, 2016. "Economic effects of tourism and its influencing factors: An overview focusing on the spending determinants of visitors," Zeitschrift für Tourismuswissenschaft, De Gruyter, vol. 8(2), pages 169-198, November.
    12. Emilio Gómez-Déniz & Jorge V Pérez-Rodríguez & José Boza-Chirino, 2020. "Modelling tourist expenditure at origin and destination," Tourism Economics, , vol. 26(3), pages 437-460, May.
    13. Xiang Wei & Songshan (Sam) Huang & Ghialy Yap & Xinfang Wu & Ariuna Taivan, 2018. "The influence of national holiday structure on domestic tourism expenditure," Tourism Economics, , vol. 24(7), pages 781-800, November.
    14. Abbruzzo, Antonino & Brida, Juan Gabriel & Scuderi, Raffaele, 2014. "Determinants of individual tourist expenditure as a network: Empirical findings from Uruguay," Tourism Management, Elsevier, vol. 43(C), pages 36-45.
    15. Juan Gabriel Brida & Marta Disegna & Raffaele Scuderi, 2013. "Visitors to Two Types of Museums: Do Expenditure Patterns Differ?," Tourism Economics, , vol. 19(5), pages 1027-1047, October.
    16. Christer Thrane, 2016. "The Determinants of Norwegians' Summer Tourism Expenditure: Foreign and Domestic Trips," Tourism Economics, , vol. 22(1), pages 31-46, February.
    17. Carol Newman & Maeve Henchion & Alan Matthews, 2003. "A double-hurdle model of Irish household expenditure on prepared meals," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1053-1061.
    18. Olya, Hossein GT & Mehran, Javaneh, 2017. "Modelling tourism expenditure using complexity theory," Journal of Business Research, Elsevier, vol. 75(C), pages 147-158.
    19. Kuntner, Tobias & Teichert, Thorsten, 2017. "Price Promotions: Enablers or Obstacles for Brand-Led Innovation Adoption – A Double-Hurdle Approach," EconStor Preprints 157297, ZBW - Leibniz Information Centre for Economics.
    20. Campos-Soria, Juan A. & Inchausti-Sintes, Federico & Eugenio-Martin, Juan L., 2015. "Understanding tourists' economizing strategies during the global economic crisis," Tourism Management, Elsevier, vol. 48(C), pages 164-173.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:toueco:v:29:y:2023:i:3:p:718-741. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.