IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v46y2010i1p19-41.html
   My bibliography  Save this article

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

Author

Listed:
  • Raymond Palmquist
  • 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.
(This abstract was borrowed from another version of this item.)

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
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10640-009-9331-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10640-009-9331-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lew, Daniel K. & Larson, Douglas M., 2005. "Accounting for stochastic shadow values of time in discrete-choice recreation demand models," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 341-361, September.
    2. Raj Chetty & Adam Szeidl, 2007. "Consumption Commitments and Risk Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 831-877.
    3. V. Kerry Smith & William H. Desvousges & Matthew P. McGivney, 1983. "The Opportunity Cost of Travel Time in Recreation Demand Models," Land Economics, University of Wisconsin Press, vol. 59(3), pages 259-278.
    4. Feather, Peter & Shaw, W. Douglass, 1999. "Estimating the Cost of Leisure Time for Recreation Demand Models," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 49-65, July.
    5. Kenneth E. McConnell & Ivar Strand, 1981. "Measuring the Cost of Time in Recreation Demand Analysis: An Application to Sportfishing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 153-156.
    6. Harley Frazis & Jay Stewart, 2007. "Where Does the Time Go? Concepts and Measurement in the American Time Use Survey," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 73-97, National Bureau of Economic Research, Inc.
    7. Frank J. Cesario, 1976. "Value of Time in Recreation Benefit Studies," Land Economics, University of Wisconsin Press, vol. 52(1), pages 32-41.
    8. J. Steven Landefeld & Stephanie H. McCulla, 2000. "Accounting For Nonmarket Household Production Within A National Accounts Framework," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 289-307, September.
    9. Sabina L. Shaikh & Douglas M. Larson, 2003. "A Two-Constraint Almost Ideal Demand Model of Recreation and Donations," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 953-961, November.
    10. Douglas M. Larson & Sabina L. Shaikh, 2001. "Empirical Specification Requirements for Two-Constraint Models of Recreation Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 428-440.
    11. Nancy E. Bockstael & Ivar E. Strand & W. Michael Hanemann, 1987. "Time and the Recreational Demand Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 293-302.
    12. Dale W. Jorgenson, 2009. "A New Architecture For The U.S. National Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 1-42, March.
    13. Peter C. Reiss & Matthew W. White, 2006. "Evaluating Welfare with Nonlinear Prices," NBER Working Papers 12370, National Bureau of Economic Research, Inc.
    14. DeSerpa, A C, 1971. "A Theory of the Economics of Time," Economic Journal, Royal Economic Society, vol. 81(324), pages 828-846, December.
    15. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    16. Robert E. Hall, 2009. "Reconciling Cyclical Movements in the Marginal Value of Time and the Marginal Product of Labor," Journal of Political Economy, University of Chicago Press, vol. 117(2), pages 281-323, April.
    17. K. E. McConnell, 1999. "Household Labor Market Choices and the Demand for Recreation," Land Economics, University of Wisconsin Press, vol. 75(3), pages 466-477.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. 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 of Labor Economics (IZA).
    2. Mikołaj Czajkowski & Marek Giergiczny & Jakub Kronenberg & Jeffrey Englin, 2019. "The Individual Travel Cost Method with Consumer-Specific Values of Travel Time Savings," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 961-984, November.
    3. 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.
    4. V. Kerry Smith & Carol Mansfield, 2015. "The design of benefit–cost architecture for homeland security policy analysis," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 2, pages 26-60, Edward Elgar Publishing.
    5. Mai-Thi Ta & Léa Tardieu & Harold Levrel, 2022. "Characterizing the Demand Side of Urban Greening to Inform Urban Planning – A Discrete Choice Experiment in the Paris Metropolitan Region," Revue d'économie politique, Dalloz, vol. 132(6), pages 907-949.
    6. 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.
    7. 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.
    8. Kenneth E. McConnell, 2015. "Valuing time for Department of Homeland Security projects and policies," Chapters, in: Carol Mansfield & V. K. Smith (ed.), Benefit–Cost Analyses for Security Policies, chapter 9, pages 203-224, Edward Elgar Publishing.
    9. Rosa Marina González & Concepción Román & Ángel Simón Marrero, 2021. "Values of Travel Time for Recreational Trips under Different Behavioural Rules," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    10. John R. McKean & Donn Johnson & R.G. Taylor, 2014. "Estimating Tournament Effects on Sportfishing Demand," Tourism Economics, , vol. 20(5), pages 1067-1086, October.
    11. 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).
    12. 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.
    13. 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.
    14. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lew, Daniel K. & Larson, Douglas M., 2005. "Accounting for stochastic shadow values of time in discrete-choice recreation demand models," Journal of Environmental Economics and Management, Elsevier, vol. 50(2), pages 341-361, September.
    2. Larson, Douglas M. & Lew, Daniel K., 2005. "Measuring the utility of ancillary travel: revealed preferences in recreation site demand and trips taken," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(2-3), pages 237-255.
    3. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    4. 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.
    5. 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.
    6. 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.
    7. Feather, Peter & Shaw, W. Douglass, 1999. "Estimating the Cost of Leisure Time for Recreation Demand Models," Journal of Environmental Economics and Management, Elsevier, vol. 38(1), pages 49-65, July.
    8. Wichman, Casey J. & Cunningham, Brandon, 2023. "Notching for free: Do cyclists reveal the opportunity cost of time?," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    9. Larson, Douglas M. & Piennar, Elizabeth, 2004. "Time, Weak Complementarity, and Nonuse Value," 2004 Annual meeting, August 1-4, Denver, CO 271500, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Amoako-Tuffour, Joe & Martınez-Espineira, Roberto, 2008. "Leisure and the Opportunity Cost of Travel Time in Recreation Demand Analysis: A Re-Examination," MPRA Paper 8573, University Library of Munich, Germany.
    11. Wichman, Casey & Cunningham, Brandon, 2017. "Notching for Free: Do Cyclists Reveal the Value of Time?," RFF Working Paper Series 17-17, Resources for the Future.
    12. Kuriyama, Koichi & Shoji, Yasushi & Tsuge, Takahiro, 2020. "The value of leisure time of weekends and long holidays: The multiple discrete–continuous extreme value (MDCEV) choice model with triple constraints," Journal of choice modelling, Elsevier, vol. 37(C).
    13. Raymond B. Palmquist & Daniel J. Phaneuf & V. Kerry Smith, 2007. "Measuring the Values for Time," NBER Working Papers 13594, National Bureau of Economic Research, Inc.
    14. McKean, John R. & Johnson, Donn M. & Taylor, R. Garth, 2001. "The Value Of Sport Fishing In The Snake River Basin Of Central Idaho," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36190, Western Agricultural Economics Association.
    15. Smith, V. Kerry, 1997. "Time and the Valuation of Environmental Resources," RFF Working Paper Series dp-98-07, Resources for the Future.
    16. Larson, Douglas M. & Johnston, Richard S., 1992. "Is Outdoor Recreation a Giffen Good?," 1992 Annual Meeting, August 9-12, Baltimore, Maryland 271390, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Larson, Douglas M. & Johnston, Richard S., 1992. "Are Giffen Goods Really So Rare?," Working Papers 225871, University of California, Davis, Department of Agricultural and Resource Economics.
    18. Hoque, Mohammad Mainul & Kling, Catherine L. & Herriges, Joseph A., 2013. "Is Outdoor Recreation Recession-proof? An Empirical Investigation on Iowan’s Lake Recreation Behavior During 2009 Recession," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150640, Agricultural and Applied Economics Association.
    19. Christopher Azevedo & John R. Crooker, 2008. "Alternative Approaches to Incorporating the Opportunity Cost of Time in Recreation Demand Models," Working Papers 0803, University of Central Missouri, Department of Economics & Finance, revised May 2008.
    20. Azevedo, Christopher Dean, 1999. "Linking revealed and stated preference data in recreation demand modeling," ISU General Staff Papers 1999010108000013438, Iowa State University, Department of Economics.

    More about this item

    Keywords

    Opportunity cost of time; Time allocation; Choice margins; Local recreation outings; Q26; J22; D13;
    All these keywords.

    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

    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:kap:enreec:v:46:y:2010:i:1:p:19-41. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.