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Spatial random utility model with an application to recreation demand

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  • Smirnov, Oleg A.
  • Egan, Kevin J.

Abstract

The paper examines the relevance of unobserved spatial dependence between individual decision-makers in the analysis of discrete choices. To incorporate spatial interdependencies in the behavioral analysis, we propose a spatial random utility model of recreation demand. The model combines the set-theoretic concept of spatial neighborhood, endogeneity of spatial interdependencies, and unobservable individual preferences. Our estimation procedure uses an efficient pseudo maximum likelihood estimator. We apply the model to the study of recreational travel demand in Iowa and evaluate the significance of unobserved spatial interdependencies between individual households in recreational travel choices.

Suggested Citation

  • Smirnov, Oleg A. & Egan, Kevin J., 2012. "Spatial random utility model with an application to recreation demand," Economic Modelling, Elsevier, vol. 29(1), pages 72-78.
    • Handle: RePEc:eee:ecmode:v:29:y:2012:i:1:p:72-78
    DOI: 10.1016/j.econmod.2010.09.026
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    3. Seong-Hoon Cho & J.M. Bowker & Roland K. Roberts & Seunggyu Kim & Taeyoung Kim & Dayton M. Lambert, 2015. "Effects on Consumer Welfare of Visitor Satisfaction with Recreation Information Availability: A Case Study of the Allegheny National Forest," Tourism Economics, , vol. 21(4), pages 853-869, August.
    4. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
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    More about this item

    Keywords

    Random utility model; Discrete choice; Spatial dependence; Travel demand;
    All these keywords.

    JEL classification:

    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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