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Dynamic and Stochastic Structures in Tourism Demand Modelling

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Author Info

  • Nordström, Jonas

    ()
    (Department of Economics, Umeå University)

Abstract

In this paper we consider a model for international tourism demand. The analysis departure from a utility function that is both dynamic and stochastic. In the model the stochastic component is interpreted as random changes in preferences for goods and services, whereas the dynamic component can be seen as either habit formation or interdependent preferences. The resulting demand functions are estimated as a multivariate state space model, where the stochastic components enter the model as stochastic seasonal and trend components. An application is done for different segments of the Swedish tourism market.

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Bibliographic Info

Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 596.

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Length: 15 pages
Date of creation: 29 Nov 2002
Date of revision:
Publication status: Published in Empirical Economics, 2005, pages 379-392.
Handle: RePEc:hhs:umnees:0596

Contact details of provider:
Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Email:
Web page: http://www.econ.umu.se/
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Keywords: Demand analysis; Stochastic preferences; Time series; Tourism;

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Cited by:
  1. Amitrajeet Batabyal & Hamid Beladi, 2008. "Visitor classification, vehicle breakdowns, and the provision of transport for tourism," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, vol. 1(2), pages 99-105, December.
  2. Muhammad Chaudhary & Amitrajeet Batabyal, 2009. "A stochastic analysis of alternate ways of scheduling transport for tourists," Letters in Spatial and Resource Sciences, Springer, vol. 2(2), pages 67-75, October.
  3. repec:ebl:ecbull:v:12:y:2007:i:4:p:1-7 is not listed on IDEAS
  4. Boopen, Seetanah, 2005. "Transport Capital as a Determinant of Tourism Development: A Time Series Approach," MPRA Paper 25402, University Library of Munich, Germany, revised 07 Nov 2006.
  5. Amitrajeet Batabyal, 2007. "A probabilistic analysis of a scheduling problem in the economics of tourism," Economics Bulletin, AccessEcon, vol. 12(4), pages 1-7.
  6. Amitrajeet Batabyal, 2009. "An independence result concerning the arrival rate of and the provision of transport to tourists," Economics Bulletin, AccessEcon, vol. 29(1), pages 108-115.
  7. Naudé, Wim & Saayman, Andrea, 2005. "Determinants of tourist arrivals in Africa: a panel data regression analysis," MPRA Paper 16479, University Library of Munich, Germany.

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