Leisure and the Opportunity Cost of Travel Time in Recreation Demand Analysis: A Re-Examination
AbstractUsing count data models that account for zero-truncation, overdispersion, and endogenous stratification, this paper estimates the value of access to recreational parks. The focus is on the valuation of the opportunity cost of travel time within the cost of the trip and its effects on estimated consumer surplus. The fraction of hourly earnings that corresponds to the opportunity cost of travel time is endogenously estimated as a function of visitor characteristics, rather than fixed exogenously. We find that the relevant opportunity cost of time for most visitors represents a smaller fraction of their wage rate than commonly assumed previously.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8573.
Date of creation: 2008
Date of revision:
value of time; endogenous stratification; on-site sampling; overdispersion; recreation demand; travel cost method;
Find related papers by JEL classification:
- Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
- Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-10 (All new papers)
- NEP-ENV-2008-05-10 (Environmental Economics)
- NEP-LAB-2008-05-10 (Labour Economics)
- NEP-TUR-2008-05-10 (Tourism Economics)
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