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Short Run Constraints and the Increasing Marginal Value of Time in Recreation

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  • Raymond Palmquist

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  • Daniel Phaneuf
  • V. Smith

Abstract

Leisure activities such as local recreation trips usually take place in discrete blocks of time that are surrounded by time devoted to other commitments. It can be costly to transfer time between blocks to allow for longer outings. These observations affect the value of time within those blocks and suggest that traditional methods for valuing time using labor markets miss important considerations. This paper presents a new model for time valuation that uses non-employment time commitments to infer the shadow value of time spent in recreation. A unique survey that elicited revealed and stated preference data on household time allocation is used to implement the model. The results support the conclusion that there is an increasing marginal value of time for recreation as the trip length increases.
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Suggested Citation

  • Raymond Palmquist & Daniel Phaneuf & V. Smith, 2010. "Short Run Constraints and the Increasing Marginal Value of Time in Recreation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(1), pages 19-41, May.
  • Handle: RePEc:kap:enreec:v:46:y:2010:i:1:p:19-41 DOI: 10.1007/s10640-009-9331-3
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kenneth E. McConnell, 2015. "Valuing time for Department of Homeland Security projects and policies," Chapters,in: Benefit–Cost Analyses for Security Policies, chapter 9, pages 203-224 Edward Elgar Publishing.
    2. Wolff, Hendrik & Makino, Momoe, 2012. "Extending Becker's Time Allocation Theory to Model Continuous Time Blocks: Evidence from Daylight Saving Time," IZA Discussion Papers 6787, Institute for the Study of Labor (IZA).
    3. Fezzi, Carlo & Bateman, Ian J. & Ferrini, Silvia, 2014. "Using revealed preferences to estimate the Value of Travel Time to recreation sites," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 58-70.
    4. Phaneuf, Daniel J., 2011. "Can consumption of convenience products reveal the opportunity cost of time?," Economics Letters, Elsevier, vol. 113(1), pages 92-95, October.
    5. 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.
    6. V. Kerry Smith & Carol Mansfield, 2015. "The design of benefit–cost architecture for homeland security policy analysis," Chapters,in: Benefit–Cost Analyses for Security Policies, chapter 2, pages 26-60 Edward Elgar Publishing.
    7. Burger, John D. & Walters, Stephen J.K., 2012. "Is America’s National Pastime too time consuming?," Economics Letters, Elsevier, vol. 115(2), pages 204-206.
    8. Simões, Paula & Barata, Eduardo & Cruz, Luís, 2013. "Joint estimation using revealed and stated preference data: An application using a national forest," Journal of Forest Economics, Elsevier, vol. 19(3), pages 249-266.
    9. Carlo Fezzi & Ian J. Bateman, 2013. "Estimating the Value of Travel Time to Recreational Sites Using Revealed Preferences," Working Papers 2013.64, Fondazione Eni Enrico Mattei.
    10. 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).

    More about this item

    Keywords

    Opportunity cost of time; Time allocation; Choice margins; Local recreation outings; Q26; J22; D13;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

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