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Augmenting travel cost models with contingent behavior data

  • Jeffrey Englin
  • Trudy Cameron

This paper proposes contingent behavior survey questions as a valuable supplement to observed data in travel cost models of non-market demand for recreational resources. A set of observed and contingent behavior results for each survey respondent allows the researcher to control for individual heterogeneity by taking advantage of panel data methods when exploring the nature of respondent demands. The contingent scenarios also provide opportunities to (a) test for differences between observed and contingent preferences and/or (b) assess likely demands under conditionsbeyond the domain of observed variation in costs or resource attributes. Most importantly, contingent scenarios allow the researcher to imposeexogenously varying travel costs. Exogenous imposition of travel costs together with panel methods reduces the omitted variables bias that plagues observed-data travel cost models of recreational demand. Using a convenience sample of data for illustrative purposes, we show how to estimate the demand for recreational angling by combining observed and contingent behavior data. We begin with simple naive pooled Poisson models and progress to more theoretically appropriate fixed effects panel Poisson specifications. Copyright Kluwer Academic Publishers 1996

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File URL: http://hdl.handle.net/10.1007/BF00699288
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 7 (1996)
Issue (Month): 2 (March)
Pages: 133-147

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Handle: RePEc:kap:enreec:v:7:y:1996:i:2:p:133-147
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  1. Hall, Bronwyn H & Griliches, Zvi & Hausman, Jerry A, 1986. "Patents and R and D: Is There a Lag?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 265-83, June.
  2. Daniel Hellerstein, 1993. "Intertemporal data and travel cost analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(2), pages 193-207, April.
  3. Trudy Ann Cameron, 1992. "Combining Contingent Valuation and Travel Cost Data for the Valuation of Nonmarket Goods," Land Economics, University of Wisconsin Press, vol. 68(3), pages 302-317.
  4. Jerry A. Hausman & Bronwyn H. Hall & Zvi Griliches, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," NBER Technical Working Papers 0017, National Bureau of Economic Research, Inc.
  5. Gourieroux Christian & Monfort Alain & Trognon A, 1982. "Pseudo maximum lilelihood methods : applications to poisson models," CEPREMAP Working Papers (Couverture Orange) 8203, CEPREMAP.
  6. Peter P. Caulkins & Richard C. Bishop & Nicolaas W. Bouwes, 1985. "Omitted Cross-Price Variable Biases in the Linear Travel Cost Model: Correcting Common Misperceptions," Land Economics, University of Wisconsin Press, vol. 62(2), pages 182-187.
  7. Hellerstein, Daniel, 1991. "Using Count Data Models in Travel Cost Analysis with Aggregate Data," MPRA Paper 25264, University Library of Munich, Germany.
  8. Catherine L. Kling, 1989. "A Note on the Welfare Effects of Omitting Substitute Prices and Qualities from Travel Cost Models," Land Economics, University of Wisconsin Press, vol. 65(3), pages 290-296.
  9. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
  10. Bronwyn H. Hall & Zvi Griliches & Jerry A. Hausman, 1984. "Patents and R&D: Is There A Lag?," NBER Working Papers 1454, National Bureau of Economic Research, Inc.
  11. P. Geoffrey Allen & Thomas H. Stevens & Scott A. Barrett, 1981. "The Effects of Variable Omission in the Travel Cost Technique," Land Economics, University of Wisconsin Press, vol. 57(2), pages 173-180.
  12. Kling, Catherine L., 1989. "Note on the Welfare Effects of Omitting Substitute Prices and Qualities from Travel Cost Models (A)," Staff General Research Papers 1593, Iowa State University, Department of Economics.
  13. Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier.
  14. Alan Randall, 1994. "Difficulty with the Travel Cost Method," Land Economics, University of Wisconsin Press, vol. 70(1), pages 88-96.
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