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Estimation and Welfare Calculations in a Generalized Corner Solution Model with an Application to Recreation Demand

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Author Info
Daniel J. Phaneuf
Catherine L. Kling () (Center for Agricultural and Rural Development (CARD))
Joseph A. Herriges

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Abstract

The Kuhn-Tucker model provides a utility theoretic framework for estimating preferences over commodities for which individuals choose not to consume one or more of the goods. This paper provides an application of the Kuhn-Tucker model to the problem of recreation demand and site selection, modeling the demand for fishing in the Wisconsin Great Lakes region.

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Publisher Info
Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 99-wp207.

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Date of creation: Jul 1998
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Handle: RePEc:ias:cpaper:99-wp207

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Srinivasan, T C & Winer, Russell S, 1994. "Using Neoclassical Consumer-Choice Theory to Produce a Market Map from Purchase Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(1), pages 1-9, January.
  2. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-42, September. [Downloadable!] (restricted)
  3. Morey, Edward R, 1984. "The Choice of Ski Areas: Estimation of a Generalized CES Preference Ordering with Characteristics," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 584-90, November. [Downloadable!] (restricted)
  4. Morey, Edward R. & Shaw, W. Douglass & Rowe, Robert D., 1991. "A discrete-choice model of recreational participation, site choice, and activity valuation when complete trip data are not available," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 181-201, March. [Downloadable!] (restricted)
  5. Fortin, B. & Lacroix, G., 1991. "Labour Supply, Tax Evasion and the Marginal Cost of Public Funds: An Empirical Investigation," Cahiers de recherche 9114, Université Laval - Département d'économique.
    Other versions:
  6. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-61, May. [Downloadable!] (restricted)
  7. Englin, Jeffrey & Shonkwiler, J S, 1995. "Estimating Social Welfare Using Count Data Models: An Application to Long-Run Recreation Demand under Conditions of Endogenous Stratification and Truncation," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 104-12, February. [Downloadable!] (restricted)
  8. Ransom, Michael R, 1987. "The Labor Supply of Married Men: A Switching Regressions Model," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 63-75, January. [Downloadable!] (restricted)
  9. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April. [Downloadable!] (restricted)
  10. Hausman, Jerry A. & Leonard, Gregory K. & McFadden, Daniel, 1995. "A utility-consistent, combined discrete choice and count data model Assessing recreational use losses due to natural resource damage," Journal of Public Economics, Elsevier, vol. 56(1), pages 1-30, January. [Downloadable!] (restricted)
  11. Ransom, Michael R, 1987. "An Empirical Model of Discrete and Continuous Choice in Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 465-72, August. [Downloadable!] (restricted)
  12. Daniel McFadden, 1996. "Computing Willingness-to-Pay in Random Utility Models," Working Papers _011, University of California at Berkeley, Econometrics Laboratory Software Archive.
  13. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
  14. Hans M. Amman & David A. Kendrick, . "Computational Economics," Online economics textbooks, SUNY-Oswego, Department of Economics, number comp1, September. [Downloadable!]
  15. Kling, Catherine L. & Bockstael, Nancy & Michael, W., 2005. "Estimating the Value of Water Quality Improvements in a Recreational Demand Framework," Staff General Research Papers 12334, Iowa State University, Department of Economics.
  16. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation, Yale University. [Downloadable!]
  17. Lacroix, G. & Fortin, B., 1991. "Utility-Based Estimation of Labor Supply Functions in the Regular and Irregular Sectors," Cahiers de recherche 9020, Université Laval - Département d'économique.
    Other versions:
  18. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November. [Downloadable!] (restricted)
  19. Shaw, Daigee, 1988. "On-site samples' regression : Problems of non-negative integers, truncation, and endogenous stratification," Journal of Econometrics, Elsevier, vol. 37(2), pages 211-223, February. [Downloadable!] (restricted)
  20. Lee, Lung-Fei & Pitt, Mark M., 1987. "Microeconometric models of rationing, imperfect markets, and non-negativity constraints," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 89-110. [Downloadable!] (restricted)
  21. Fulginiti, Lilyan & Perrin, Richard, 1993. "The Theory and Measurement of Producer Response under Quotas," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 97-106, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bernard Fortin & Nadia Joubert & Guy Lacroix, 2002. "Fiscalité, effets de voisinage et offre de travail au noir," Post-Print halshs-00178184_v1, HAL. [Downloadable!]
  2. Herriges, Joseph & Kling, Catherine & Phaneuf, Daniel, 1999. "Corner Solution Models of Recreation Demand: A Comparison of Competing Frameworks," Staff General Research Papers 4013, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  3. Kevin J. Egan & Joseph A. Herriges & Catherine L. Kling & John A. Downing, 2004. "Recreation Demand Using Physical Measures of Water Quality," Center for Agricultural and Rural Development (CARD) Publications 04-wp372, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  4. Phaneuf, Daniel & Kling, Catherine & Herriges, Joseph, 1999. "Valuing Water Quality Improvements Using Revealed Preference Methods when Corner Solutions are Prevalent," Staff General Research Papers 4014, Iowa State University, Department of Economics. [Downloadable!]
  5. John C. Whitehead & Daniel Phaneuf & Christopher F. Dumas & Jim Herstine & Jeffrey Hill & Bob Buerger, 2007. "Convergent Validity of Revealed and Stated Recreation Behavior with Quality Change: A Comparison of Multiple and Single Site Demands," Working Papers 07-17, Department of Economics, Appalachian State University. [Downloadable!]
  6. Herriges, Joseph A. & Kling, Catherine L. & Phaneuf, Daniel J., 2000. "What's the Use? Welfare Estimates from Revealed Preference Models when Weak Complementarity Does Not Hold," Staff General Research Papers 1905, Iowa State University, Department of Economics.
    Other versions:
  7. Dan Phaneuf, 2000. "Choice Set Definition Issues in a Kuhn-Tucker Model of Recreation Demand," Econometric Society World Congress 2000 Contributed Papers 1821, Econometric Society. [Downloadable!]
  8. Jeon, Yongsik & Herriges, Joseph A. & Kling, Catherine L. & Downing, John, 2005. "The Role of Water Quality Perceptions in Modeling Lake Recreation Demand," Staff General Research Papers 12474, Iowa State University, Department of Economics. [Downloadable!]
  9. Dietrich Earnhart, 2004. "Time is Money: Improved Valuation of Time and Transportation Costs," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(2), pages 159-190, October. [Downloadable!] (restricted)
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