Panel Travel Cost Count Data Models for On-Site Samples that Incorporate Unobserved Heterogeneity with Respect to the Impact of the Explanatory Variables
AbstractIn this paper, we examine heterogeneity in the trip preferences of recreationists by applying a random parameters negative binomial model and a latent class negative binomial model to a panel data set of beach users at a site on the west coast of Ireland. This is the first such attempt in the literature to account for heterogeneity with respect to the impact of the chosen explanatory variables in contingent behaviour travel cost models of demand where the researcher also must account for the fact that the sample data has been collected on-site. The analysis also develops individual consumer surplus estimates and finds that estimates are systematically affected by both the random parameter and latent class specifications. There is also evidence that accounting for individual heterogeneity improves the statistical fit of the models and provides a more informative description of the drivers of recreationalist trip behaviour.
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Bibliographic InfoPaper provided by Socio-Economic Marine Research Unit, National University of Ireland, Galway in its series Working Papers with number 148834.
Date of creation: 2012
Date of revision:
Contingent behaviour; travel cost; count data; heterogeneity; latent class; random parameter; endogenous stratification; truncation; negative binomial; consumer surplus; Environmental Economics and Policy; Research Methods/ Statistical Methods;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-24 (All new papers)
- NEP-DCM-2013-05-24 (Discrete Choice Models)
- NEP-TRE-2013-05-24 (Transport Economics)
- NEP-TUR-2013-05-24 (Tourism Economics)
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