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Estimating the value of leisure from a time allocation model


  • Jara-Díaz, Sergio R.
  • Munizaga, Marcela A.
  • Greeven, Paulina
  • Guerra, Reinaldo
  • Axhausen, Kay


A new approach to calculate the value of leisure is developed and applied. This is derived from a consumer behaviour model that includes goods and activities. A system of time assignment equations is explicitly obtained from which the values of both leisure and work can be analytically calculated using econometrically estimated parameters. This framework is applied using detailed data from three samples in diverse settings: Santiago (Chile), Karlsruhe (Germany), and Thurgau (Switzerland). The empirically estimated values of leisure differ from the wage rate and a theoretical justification is provided.

Suggested Citation

  • Jara-Díaz, Sergio R. & Munizaga, Marcela A. & Greeven, Paulina & Guerra, Reinaldo & Axhausen, Kay, 2008. "Estimating the value of leisure from a time allocation model," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 946-957, December.
  • Handle: RePEc:eee:transb:v:42:y:2008:i:10:p:946-957

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    References listed on IDEAS

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    Cited by:

    1. repec:eee:transa:v:103:y:2017:i:c:p:36-53 is not listed on IDEAS
    2. Héctor López-Ospina & Francisco Martínez & Cristián Cortés, 2015. "A time-hierarchical microeconomic model of activities," Transportation, Springer, vol. 42(2), pages 211-236, March.
    3. Jara-Díaz, Sergio R. & Astroza, Sebastian & Bhat, Chandra R. & Castro, Marisol, 2016. "Introducing relations between activities and goods consumption in microeconomic time use models," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 162-180.
    4. repec:eee:transb:v:100:y:2017:i:c:p:175-195 is not listed on IDEAS
    5. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2015. "Understanding time use: Daily or weekly data?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 76(C), pages 38-57.
    6. Parry, Ian & Strand, Jon, 2012. "International fuel tax assessment: an application to Chile," Environment and Development Economics, Cambridge University Press, vol. 17(02), pages 127-144, April.
    7. Marcela Munizaga & Sergio Jara-Díaz & Javiera Olguín & Jorge Rivera, 2011. "Generating twins to build weekly time use data from multiple single day OD surveys," Transportation, Springer, vol. 38(3), pages 511-524, May.
    8. Liping Gao & Hyeongwoo Kim & Yaoqi Zhang, 2013. "On the Effect of the Great Recession on US Household Expenditures for Entertainment," Auburn Economics Working Paper Series auwp2013-09, Department of Economics, Auburn University.
    9. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    10. Tscharaktschiew, Stefan & Hirte, Georg, 2009. "An urban general equilibrium model with multiple household structures and travel mode choice," MPRA Paper 17697, University Library of Munich, Germany.
    11. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    12. Frei, Charlotte & Mahmassani, Hani S. & Frei, Andreas, 2015. "Making time count: Traveler activity engagement on urban transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 76(C), pages 58-70.
    13. Benjamin Kickhöfer & Dominik Grether & Kai Nagel, 2011. "Public acceptance and economic evaluation of transport policies (refereed paper)," ERSA conference papers ersa10p1022, European Regional Science Association.
    14. Boncinelli, Fabio & Riccioli, Francesco & Marone, Enrico, 2015. "Do forests help to keep my body mass index low?," Forest Policy and Economics, Elsevier, vol. 54(C), pages 11-17.
    15. Dane, Gamze & Arentze, Theo A. & Timmermans, Harry J.P. & Ettema, Dick, 2014. "Simultaneous modeling of individuals’ duration and expenditure decisions in out-of-home leisure activities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 93-103.
    16. Flügel, Stefan, 2014. "Accounting for user type and mode effects on the value of travel time savings in project appraisal: Opportunities and challenges," Research in Transportation Economics, Elsevier, vol. 47(C), pages 50-60.
    17. Jenelius, Erik & Mattsson, Lars-Göran & Levinson, David, 2011. "Traveler delay costs and value of time with trip chains, flexible activity scheduling and information," Transportation Research Part B: Methodological, Elsevier, vol. 45(5), pages 789-807, June.
    18. Georg Hirte & Stefan Tscharaktschiew, 2015. "Why not to choose the most convenient labor supply model? The impact of labor supply modeling on policy evaluation," ERSA conference papers ersa15p303, European Regional Science Association.
    19. 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).
    20. Richard Melstrom, 2014. "Valuing historic battlefields: an application of the travel cost method to three American Civil War battlefields," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(3), pages 223-236, August.

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