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Leisure and the Opportunity Cost of Travel Time in Recreation Demand Analysis: A Re-Examination

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  • Amoako-Tuffour, Joe
  • Martınez-Espineira, Roberto

Abstract

Using 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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File URL: http://mpra.ub.uni-muenchen.de/8573/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8573.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:8573

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Keywords: value of time; endogenous stratification; on-site sampling; overdispersion; recreation demand; travel cost method;

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  1. Bell, Frederick W. & Leeworthy, Vernon R., 1990. "Recreational demand by tourists for saltwater beach days," Journal of Environmental Economics and Management, Elsevier, vol. 18(3), pages 189-205, May.
  2. Feather, Peter & Shaw, W. Douglass, 1998. "Estimating The Cost Of Leisure Time For Recreation Demand Models," 1998 Annual meeting, August 2-5, Salt Lake City, UT, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 20855, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Hellerstein, Daniel & Mendelsohn, Robert, 1993. "A Theoretical Foundation for Count Data Models," MPRA Paper 25265, University Library of Munich, Germany.
  4. 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.
  5. Roberto Martinez-Espineira & Joe Amoako-Tuffour, 2005. "Recreation Demand Analysis under Truncation, Overdispersion, and Endogenous Stratification: An Application to Gros Morne National Park," Econometrics, EconWPA 0511007, EconWPA.
  6. Danielle Hagerty & Klaus Moeltner, 2005. "Specification of Driving Costs in Models of Recreation Demand," Land Economics, University of Wisconsin Press, vol. 81(1).
  7. Carter Betz & John Bergstrom & J. M. Bowker, 2003. "A Contingent Trip Model for Estimating Rail-trail Demand," Journal of Environmental Planning and Management, Taylor & Francis Journals, Taylor & Francis Journals, vol. 46(1), pages 79-96.
  8. Dietrich Earnhart, 2004. "Time is Money: Improved Valuation of Time and Transportation Costs," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 29(2), pages 159-190, October.
  9. John A. Curtis, 2002. "Estimating the Demand for Salmon Angling in Ireland," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 33(3), pages 319-332.
  10. V. Kerry Smith & William H. Desvousges & Matthew P. McGivney, 1983. "The Opportunity Cost of Travel Time in Recreation Demand Models," Land Economics, University of Wisconsin Press, vol. 59(3), pages 259-278.
  11. Beal, Diana J., 1995. "A Travel Cost Analysis of the Value of Carnarvon Gorge National Park for Recreational Use," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 63(02), August.
  12. Shrestha, Ram K. & Seidl, Andrew F. & Moraes, Andre S., 2002. "Value of recreational fishing in the Brazilian Pantanal: a travel cost analysis using count data models," Ecological Economics, Elsevier, Elsevier, vol. 42(1-2), pages 289-299, August.
  13. Gurmu, Shiferaw & Trivedi, Pravin K, 1996. "Excess Zeros in Count Models for Recreational Trips," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 14(4), pages 469-77, October.
  14. Englin Jeffrey & Shonkwiler J. S., 1995. "Modeling Recreation Demand in the Presence of Unobservable Travel Costs: Toward a Travel Price Model," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 368-377, November.
  15. R. Craig Layman & John R. Boyce & Keith R. Criddle, 1996. "Economic Valuation of the Chinook Salmon Sport Fishery of the Gulkana River, Alaska, under Current and Alternate Management Plans," Land Economics, University of Wisconsin Press, vol. 72(1), pages 113-128.
  16. Shaw, Daigee, 1988. "On-site samples' regression : Problems of non-negative integers, truncation, and endogenous stratification," Journal of Econometrics, Elsevier, Elsevier, vol. 37(2), pages 211-223, February.
  17. Joseph Hilbe, 2005. "GNBSTRAT: Stata module to estimate Generalized Negative Binomial with Endogenous Stratification," Statistical Software Components S456413, Boston College Department of Economics.
  18. Ian J. Bateman & Guy D. Garrod & Julii S. Brainard & Andrew A. Lovett, 1996. "Measurement Issues In The Travel Cost Method: A Geographical Information Systems Approach," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 47(1-4), pages 191-205.
  19. Jeffrey Englin & Trudy Cameron, 1996. "Augmenting travel cost models with contingent behavior data," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 7(2), pages 133-147, March.
  20. Casey, James F. & Vukina, Tomislav & Danielson, Leon E., 1995. "The Economic Value Of Hiking: Further Considerations Of Opportunity Cost Of Time In Recreational Demand Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, Southern Agricultural Economics Association, vol. 27(02), December.
  21. John R. McKean & Donn M. Johnson & Richard G. Walsh, 1995. "Valuing Time in Travel Cost Demand Analysis: An Empirical Investigation," Land Economics, University of Wisconsin Press, vol. 71(1), pages 96-105.
  22. Joseph Hilbe & Roberto Martinez-Espineira, 2005. "NBSTRAT: Stata module to estimate Negative Binomial with Endogenous Stratification," Statistical Software Components S456414, Boston College Department of Economics.
  23. W. Douglass Shaw & Peter Feather, 1999. "Possibilities for Including the Opportunity Cost of Time in Recreation Demand Systems," Land Economics, University of Wisconsin Press, vol. 75(4), pages 592-602.
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  25. W. Douglass Shaw, 1992. "Searching for the Opportunity Cost of an Individual's Time," Land Economics, University of Wisconsin Press, vol. 68(1), pages 107-115.
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Citations

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Cited by:
  1. Mahadev Bhat & Ramachandra Bhatta & Mohamed Shumais, 2014. "Sustainable funding policies for environmental protection: the case of Maldivian atolls," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(1), pages 45-67, January.
  2. Hynes, Stephen & Greene, William, 2011. "Estimating recreation demand with on-site panel data: An application of a latent class truncated and endogenously stratified count data model," Working Papers, Socio-Economic Marine Research Unit, National University of Ireland, Galway 148925, Socio-Economic Marine Research Unit, National University of Ireland, Galway.
  3. Anni Huhtala & Eija Pouta, 2009. "Benefit Incidence of Public Recreation Areas—Have the Winners Taken Almost All?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 43(1), pages 63-79, May.
  4. Ahlheim, Michael & Frör, Oliver & Heinke, Antonia & Duc, Nguyen Minh & Dinh, Pham Van, 2010. "Labour as a utility measure in contingent valuation studies: how good is it really?," FZID Discussion Papers 13-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  5. Ovaskainen, Ville & Neuvonen, Marjo & Pouta, Eija, 2012. "Modelling recreation demand with respondent-reported driving cost and stated cost of travel time: A Finnish case," Journal of Forest Economics, Elsevier, Elsevier, vol. 18(4), pages 303-317.

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