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Effects of Sample Selection on Estimates of Economic Impacts of Outdoor Recreation

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  • Donald B. K. English

    (USDA- Forest Service)

Abstract

Estimates of the economic impacts of recreation often come from spending data provided by a self-selected subset of a random sample of site visitors. The subset is frequently less than half the onsite sample. Biased vectors of per trip spending and impact estimates can result if self-selection is related to spending patterns, and proper corrective procedures are not employed. This paper shows a method for accounting for both sample selection and the censored nature of reported expenditures, via a Tobit model with sample selection. Results from a sample of visitors to Cumberland Island National Seashore indicate a naive (uncorrected) approach overestimates per trip visitor spending by 15 percent and economic impacts to industrial output by 10 percent.

Suggested Citation

  • Donald B. K. English, 1997. "Effects of Sample Selection on Estimates of Economic Impacts of Outdoor Recreation," The Review of Regional Studies, Southern Regional Science Association, vol. 27(3), pages 219-236, Winter.
  • Handle: RePEc:rre:publsh:v:27:y:1997:i:3:p:219-236
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    References listed on IDEAS

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    1. Bergstrom, John C. & Cordell, H. Ken & Watson, Alan E. & Ashley, Gregory A., 1990. "Economic Impacts of State Parks on State Economies in the South," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(02), pages 69-77, December.
    2. I. M. Dobbs, 1993. "Adjusting For Sample Selection Bias In The Individual Travel Cost Method," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(2), pages 335-342.
    3. Shaw, Daigee, 1988. "On-site samples' regression : Problems of non-negative integers, truncation, and endogenous stratification," Journal of Econometrics, Elsevier, vol. 37(2), pages 211-223, February.
    4. V. Kerry Smith, 1988. "Selection and Recreation Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 29-36.
    5. Nawata, Kazumitsu, 1994. "Estimation of sample selection bias models by the maximum likelihood estimator and Heckman's two-step estimator," Economics Letters, Elsevier, vol. 45(1), pages 33-40, May.
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