IDEAS home Printed from https://ideas.repec.org/a/anr/reseco/v3y2011p375-396.html
   My bibliography  Save this article

Microeconometric Strategies for Dealing with Unobservables and Endogenous Variables in Recreation Demand Models

Author

Listed:
  • Klaus Moeltner

    (Department of Agricultural and Applied Economics, Virginia Tech, Blacksburg, Virginia 24061)

  • Roger von Haefen

    (Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, North Carolina 27695
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

Abstract

The past decade has witnessed significant advances in the microeconometric analysis of recreation data. In this review, we focus on two areas in which these innovations have been especially prolific: accounting for unobserved preference heterogeneity and controlling for unobserved and possibly endogenous site characteristics, such as congestion. Failure to appropriately address these issues with the nonlinear models typically used in recreation demand analysis can severely bias parameter and welfare estimates. We consider these issues of widespread importance within and beyond recreation demand applications. We also expect these estimation challenges to become more ubiquitous as the field gradually moves toward region-wide, multisite applications in reaction to large-scale environmental changes.

Suggested Citation

  • Klaus Moeltner & Roger von Haefen, 2011. "Microeconometric Strategies for Dealing with Unobservables and Endogenous Variables in Recreation Demand Models," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 375-396, October.
    • Handle: RePEc:anr:reseco:v:3:y:2011:p:375-396
    as

    Download full text from publisher

    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.resource.012809.103916
    Download Restriction: Full text downloads are only available to subscribers. Visit the abstract page for more information.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kuwayama, Yusuke & Olmstead, Sheila & Zheng, Jiameng, 2022. "A more comprehensive estimate of the value of water quality," Journal of Public Economics, Elsevier, vol. 207(C).
    2. Richard T. Melstrom & Deshamithra H. W. Jayasekera, 2017. "Two-Stage Estimation to Control for Unobservables in a Recreation Demand Model with Unvisited Sites," Land Economics, University of Wisconsin Press, vol. 93(2), pages 328-341.
    3. English, Eric & von Haefen, Roger H. & Herriges, Joseph & Leggett, Christopher & Lupi, Frank & McConnell, Kenneth & Welsh, Michael & Domanski, Adam & Meade, Norman, 2018. "Estimating the value of lost recreation days from the Deepwater Horizon oil spill," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 26-45.
    4. H. Allen Klaiber & Roger H. von Haefen, 2019. "Do Random Coefficients and Alternative Specific Constants Improve Policy Analysis? An Empirical Investigation of Model Fit and Prediction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 75-91, May.
    5. Juan M. Gonzalez Sepulveda & F. Reed Johnson & Deborah A. Marshall, 2021. "Incomplete information and irrelevant attributes in stated‐preference values for health interventions," Health Economics, John Wiley & Sons, Ltd., vol. 30(11), pages 2637-2648, November.
    6. David A. Keiser & Joseph K. Shapiro, 2018. "Consequences of the Clean Water Act and the Demand for Water Quality," Center for Agricultural and Rural Development (CARD) Publications 17-wp571, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. David A. Keiser, 2018. "The Missing Benefits of Clean Water and the Role of Mismeasured Pollution," Center for Agricultural and Rural Development (CARD) Publications 18-wp581, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. David A Keiser & Joseph S Shapiro, 2019. "Consequences of the Clean Water Act and the Demand for Water Quality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(1), pages 349-396.
    9. Wiktor L. Adamowicz & Klaus Glenk & Jürgen Meyerhoff, 2014. "Choice modelling research in environmental and resource economics," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 27, pages 661-674, Edward Elgar Publishing.
    10. Melstrom, Richard & Lupi, Frank, 2012. "Using a Control Function to Resolve the Travel Cost Endogeneity Problem in Recreation Demand Models," MPRA Paper 48036, University Library of Munich, Germany, revised May 2013.
    11. Keiser, David A., 2018. "The Missing Benefits of Clean Water and the Role of Mismeasured Pollution," ISU General Staff Papers 201806290700001048, Iowa State University, Department of Economics.
    12. Adan L. Martinez Cruz & Yadira Elizabeth Peralta Torres & Valeria Garcia Olivera, 2024. "Using stated preference responses to address endogeneity in the single site travel cost equation," Working Papers DTE 632, CIDE, División de Economía.

    More about this item

    Keywords

    preference heterogeneity; random effects; latent class models; endogenous sorting; Bayesian methods; expectation-maximum algorithm;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anr:reseco:v:3:y:2011:p:375-396. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: http://www.annualreviews.org (email available below). General contact details of provider: http://www.annualreviews.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.