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Dynamic analysis of British demand for tourism abroad

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  • Panayiota Lyssiotou

    () (University of Cyprus, P.O.Box 20537, 1678 Nicosia, Cyprus)

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    Abstract

    This paper investigates how preference endogeneity, in the form of habit persistence, can affect short-run and long-run tourism expenditure decisions. The proposed model is applied to British quarterly data over the period 1979-91 and the empirical results suggest that preference endogeneity appears to have an important effect. This has policy implications for countries competing for British tourist arrivals. The differences between the short-run and long-run price and budget elasticities which are implied by habit persistence are also investigated.

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    File URL: http://link.springer.de/link/service/journals/00181/papers/0025003/00250421.pdf
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    Bibliographic Info

    Article provided by Springer in its journal Empirical Economics.

    Volume (Year): 25 (2000)
    Issue (Month): 3 ()
    Pages: 421-436

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    Handle: RePEc:spr:empeco:v:25:y:2000:i:3:p:421-436

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    Related research

    Keywords: Preference endogeneity · demand for tourism · habit persistence;

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    Cited by:
    1. Jacqueline M. Hamilton & David J. Maddison & Richard S.J. Tol, 2003. "Climate Change And International Tourism: A Simulation Study," Working Papers FNU-31, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2003.
    2. Panos Pashardes & Soteroula Hajispyrou, 2002. "Consumer Demand and Welfare under Increasing Block Pricing," University of Cyprus Working Papers in Economics 0207, University of Cyprus Department of Economics.
    3. Michael Haliassos, 2002. "Stockholding: Recent Lessons from Theory and Computations," University of Cyprus Working Papers in Economics 0206, University of Cyprus Department of Economics.
    4. Jacqueline M. Hamilton & Richard S.J. Tol, 2004. "The Impact Of Climate Change On Tourism And Recreation," Working Papers FNU-52, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2004.
    5. Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Reforms of Environmental Policies in the Presence of Cross-border Pollution and two Stage Clean Up," University of Cyprus Working Papers in Economics 0203, University of Cyprus Department of Economics.
    6. Maria M. De Mello & Natércia Fortuna, 2005. "Testing Alternative Dynamic Systems for Modelling Tourism Demand," CEF.UP Working Papers 0501, Universidade do Porto, Faculdade de Economia do Porto.
    7. Andrea Bigano & Alessandra Goria & Jacqueline Hamilton & Richard S.J. Tol, 2005. "The Effect of Climate Change and Extreme Weather Events on Tourism," Working Papers 2005.30, Fondazione Eni Enrico Mattei.

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