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A Latent Class Approach to Modeling Endogenous Spatial Sorting in Zonal Recreation Demand Models

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  • Kenneth A. Baerenklau
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    Abstract

    A method for incorporating unobserved heterogeneity into aggregate count data frameworks is presented and used to control for endogenous spatial sorting in zonal recreation models. The method is based on latent class analysis, which has become a popular tool for analyzing heterogeneous preferences with individual data but has not yet been applied to aggregate count data. The method is tested using data on backcountry hikers for a southern California study site and performs well for relatively small numbers of classes. The latent class model produces substantially smaller welfare estimates compared to a constrained version that assumes homogeneity throughout the population.

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    File URL: http://le.uwpress.org/cgi/reprint/86/4/800
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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 86 (2010)
    Issue (Month): 4 ()
    Pages: 800-816

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    Handle: RePEc:uwp:landec:v:86:y:2010:iv:1:p:800-816

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Jørgensen, Sisse Liv & Olsen, Søren Bøye & Ladenburg, Jacob & Martinsen, Louise & Svenningsen, Stig Roar & Hasler, Berit, 2013. "Spatially induced disparities in users' and non-users' WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay," Ecological Economics, Elsevier, vol. 92(C), pages 58-66.
    2. Hynes, Stephen & Greene, William, 2012. "Panel Travel Cost Count Data Models for On-Site Samples that Incorporate Unobserved Heterogeneity with Respect to the Impact of the Explanatory Variables," Working Papers 148834, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
    3. Abildtrup, Jens & Garcia, Serge & Olsen, Soren Boye & Stenger, Anne, 2011. "Spatial Preference Heterogeneity in Forest Recreation," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 120386, European Association of Agricultural Economists.
    4. José Grisolía & Kenneth Willis, 2012. "A latent class model of theatre demand," Journal of Cultural Economics, Springer, vol. 36(2), pages 113-139, May.

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