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An Analysis of the Microeconomic Determinants of Travel Frequency

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  • Joaquín Alegre

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  • Llorenç Pou

    ()

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    Abstract

    A critical factor in predicting the demand for tourism within a certain period of time is the number of trips individuals take. New tourists’ behaviour shows a tendency toward more frequent travel. Nevertheless, the frequency of travel has received little attention in empirical literature. This paper uses household data to examine the determinants of the number of quarters with positive tourist expenditure within a year. The results highlight the relevance in travel frequency analyses of distinguishing between the participation decision and the frequency decision conditional on participation. Many socio-demographic variables only show explanatory power for the participation decision. The two most relevant factors by far in explaining each decision are the previous year tourism demand decisions (suggesting evidence of habit persistence in tourism decisions) and disposable income, although with an income elasticity below the unit.

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    Bibliographic Info

    Paper provided by Universitat de les Illes Balears, Departament d'Economía Aplicada in its series DEA Working Papers with number 18.

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    Date of creation: Mar 2006
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    Handle: RePEc:ubi:deawps:18

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    Keywords: Tourism demand; frequency of travel; habit persistence; household data.;

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    1. Soest, A.H.O. van & Kooreman, P., 1987. "A micro-econometric analysis of vacation behaviour," Open Access publications from Tilburg University urn:nbn:nl:ui:12-365519, Tilburg University.
    2. Timothy C. Haab & Kenneth E. McConnell, 1996. "Count Data Models and the Problem of Zeros in Recreation Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 89-102.
    3. Ozuna, Teofilo, Jr & Gomez, Irma Adriana, 1995. "Specification and Testing of Count Data Recreation Demand Functions," Empirical Economics, Springer, vol. 20(3), pages 543-50.
    4. Melenberg, Bertrand & van Soest, Arthur, 1996. "Parametric and Semi-parametric Modelling of Vacation Expenditures," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(1), pages 59-76, Jan.-Feb..
    5. Karen E. Dynan, 2000. "Habit Formation in Consumer Preferences: Evidence from Panel Data," American Economic Review, American Economic Association, vol. 90(3), pages 391-406, June.
    6. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    7. Andrew M. Jones, 2012. "health econometrics," The New Palgrave Dictionary of Economics, Palgrave Macmillan.
    8. Hellström, Jörgen, 2002. "A Bivariate Count Data Model for Household Tourism Demand," UmeÃ¥ Economic Studies 583, Umeå University, Department of Economics.
    9. Thanos Mergoupis & Max Steuer, 2003. "Holiday taking and income," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 269-284.
    10. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
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