IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v20y2014i1p51-60.html
   My bibliography  Save this article

Modelling Micro-Level Tourism Expenditure: Recommendations on the Choice of Independent Variables, Functional Form and Estimation Technique

Author

Listed:
  • Christer Thrane

    (Lillehammer University College, Faculty of Economics and Organization Science, Box 952, 2604 Lillehammer, Norway, and Institute of Transport Economics, Gaustadalléen 2, 0349 Oslo, Norway)

Abstract

Marcussen (2011a) distinguished between the vital and the not-so-vital determinants of micro-level tourism expenditure. Arguably, the lessons learned from Marcussen's study, combined with best practice in recent econometric modelling, have set a new higher standard for future research on this topic. Against this background, this paper gives practical advice on how to improve the modelling of micro-level tourism expenditure in the future. Three issues are discussed: (a) the choice of independent variables; (b) the choice of functional form; and (c) the choice of estimation technique. Empirical illustrations are provided.

Suggested Citation

  • Christer Thrane, 2014. "Modelling Micro-Level Tourism Expenditure: Recommendations on the Choice of Independent Variables, Functional Form and Estimation Technique," Tourism Economics, , vol. 20(1), pages 51-60, February.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:1:p:51-60
    DOI: 10.5367/te.2013.0254
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2013.0254
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2013.0254?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
    ---><---

    References listed on IDEAS

    as
    1. Christer Thrane & Eivind Farstad, 2012. "Nationality as a Segmentation Criterion in Tourism Research: The Case of International Tourists' Expenditures While on Trips in Norway," Tourism Economics, , vol. 18(1), pages 203-217, February.
    2. Kennedy, Peter E, 2002. "Sinning in the Basement: What Are the Rules? The Ten Commandments of Applied Econometrics," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 569-589, September.
    3. Peter E. Kennedy, 2002. "Sinning in the Basement: What are the Rules? The Ten Commandments of Applied Econometrics," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 569-589, September.
    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. Faruk Urak & Nihat Küçük & Abdulbaki Bilgiç & Steven T Yen, 2023. "Modeling censored tourism expenditures in Turkey with non-normal and heteroscedastic errors: An application of the inverse hyperbolic sine double-hurdle model," Tourism Economics, , vol. 29(3), pages 718-741, May.
    2. Dora Smolčić Jurdana & Daniela Soldić Frleta, 2016. "Factors affecting the expenditure of domestic and foreign tourists - the evidence from Rijeka and Opatija, Croatia," Tourism and Hospitality Industry 31, University of Rijeka, Faculty of Tourism and Hospitality Management.
    3. António Almeida & Brian Garrod, 2017. "Insights from analysing tourist expenditure using quantile regression," Tourism Economics, , vol. 23(5), pages 1138-1145, August.
    4. Christer Thrane, 2016. "Modelling tourists’ length of stay," Tourism Economics, , vol. 22(6), pages 1352-1366, December.
    5. Jorge V Pérez-Rodríguez & Francisco Ledesma-Rodríguez, 2021. "Unconditional quantile regression and tourism expenditure: The case of the Canary Islands," Tourism Economics, , vol. 27(4), pages 626-648, June.
    6. Emilio Gómez-Déniz & Jorge V Pérez-Rodríguez & José Boza-Chirino, 2020. "Modelling tourist expenditure at origin and destination," Tourism Economics, , vol. 26(3), pages 437-460, May.
    7. Gómez–Déniz, E. & Pérez–Rodríguez, J.V., 2019. "Modelling distribution of aggregate expenditure on tourism," Economic Modelling, Elsevier, vol. 78(C), pages 293-308.
    8. Sharma, Abhijit & Woodward, Richard & Grillini, Stefano, 2020. "Unconditional quantile regression analysis of UK inbound tourist expenditures," Economics Letters, Elsevier, vol. 186(C).
    9. Luojia Wang & Kerui Du & Bin Fang & Rob Law, 2023. "Escape from air pollution: How does air quality in the place of residence shape tourism consumption?," Tourism Economics, , vol. 29(4), pages 1074-1099, June.
    10. Xiang Wei & Songshan (Sam) Huang & Ghialy Yap & Xinfang Wu & Ariuna Taivan, 2018. "The influence of national holiday structure on domestic tourism expenditure," Tourism Economics, , vol. 24(7), pages 781-800, November.
    11. Berta Ferrer-Rosell & Germà Coenders & Glòria Mateu-Figueras & Vera Pawlowsky-Glahn, 2016. "Understanding Low-Cost Airline Users' Expenditure Patterns and Volume," Tourism Economics, , vol. 22(2), pages 269-291, April.
    12. Robert Štefko & Jozef Džuka & Eva Litavcová & Darina Ňakatova & Martin Lačný, 2020. "Psychological Characteristics of a Tourist as Predictors of Expenditures: An Analytical Review and Proposal of the Predictive Model," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 14(3), September.
    13. Mayer Marius & Vogt Luisa, 2016. "Economic effects of tourism and its influencing factors: An overview focusing on the spending determinants of visitors," Zeitschrift für Tourismuswissenschaft, De Gruyter, vol. 8(2), pages 169-198, November.
    14. Engström, Truls & Kipperberg, Gorm, 2015. "Decomposing the heterogeneous discretionary spending of international visitors to Fjord Norway," Tourism Management, Elsevier, vol. 51(C), pages 131-141.
    15. Beata Gavurova & Martin Rigelsky & Martin Mikeska, 2023. "Relationships between road transport indicators and expenditure of visitors in the context of European countries’ tourism competitiveness," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(2), pages 393-418, June.
    16. Christer Thrane, 2016. "The Determinants of Norwegians' Summer Tourism Expenditure: Foreign and Domestic Trips," Tourism Economics, , vol. 22(1), pages 31-46, February.
    17. Rudkin, Simon & Sharma, Abhijit, 2017. "Enhancing understanding of tourist spending using unconditional quantile regression," Annals of Tourism Research, Elsevier, vol. 66(C), pages 188-191.
    18. Jorge Moll-de-Alba & Lluís Prats & Lluís Coromina, 2016. "The need to adapt to travel expenditure patterns. A study comparing business and leisure tourists in Barcelona," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 253-267, August.
    19. Chih-Wen Yang & Cheng-Lung (Richard) Wu & Jin-Long Lu, 2021. "Exploring the interdependency and determinants of tourism participation, expenditure, and duration: An analysis of Taiwanese citizens traveling abroad," Tourism Economics, , vol. 27(4), pages 649-669, June.

    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. Hendry, David F. & Clements, Michael P., 2003. "Economic forecasting: some lessons from recent research," Economic Modelling, Elsevier, vol. 20(2), pages 301-329, March.
    2. Christopher L. Gilbert & Duo Qin, 2005. "The First Fifty Years of Modern Econometrics," Working Papers 544, Queen Mary University of London, School of Economics and Finance.
    3. Thomas Mayer, 2006. "The Empirical Significance of Econometric Models," Working Papers 620, University of California, Davis, Department of Economics.
    4. David Greasley & Les Oxley, 2010. "Cliometrics And Time Series Econometrics: Some Theory And Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 24(5), pages 970-1042, December.
    5. Michael O'Connor Keefe & James Tate & Henk Berkman, 2013. "Is the relationship between investment and conditional cash flow volatility ambiguous, asymmetric or both?," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(4), pages 913-947, December.
    6. Teresa Briz & Andreas C. Drichoutis & Rodolfo M. Nayga, Jr, 2014. "Detecting false positives in experimental auctions: A case study of projection bias in food consumption," Working Papers 2014-4, Agricultural University of Athens, Department Of Agricultural Economics.
    7. Maurizio Canavari & Andreas C. Drichoutis & Jayson L. Lusk & Rodolfo M. Nayga, Jr., 2018. "How to run an experimental auction: A review of recent advances," Working Papers 2018-5, Agricultural University of Athens, Department Of Agricultural Economics.
    8. Christopher L. Gilbert & Duo Qin, 2005. "The First Fifty Years of Modern Econometrics," Working Papers 544, Queen Mary University of London, School of Economics and Finance.
    9. Duo Qin, 2019. "Let’s take the bias out of econometrics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 26(2), pages 81-98, April.
    10. Marek Gruszczyñski, 2018. "Good Practices in Empirical Corporate Finance and Accounting Research," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 2(10), pages 45-51, December.
    11. Judith A. Clarke & Nilanjana Roy & Marsha J. Courchane, 2006. "On the Robustness of Racial Disrcimination Findings in Motgage Lending Studies," Econometrics Working Papers 0604, Department of Economics, University of Victoria.
    12. Eduardo Loría & Raúl Tirado, 2022. "Sacrifice rate and labour precariousness in Mexico, 2005Q1-2019Q4," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 41(87), pages 427-456, December.
    13. Richard V. Adkisson & Comfort F. Ricketts, 2016. "Exploring the Redistribution of Manufacturing Employment Among the American States in the Face of Overall Declines in Employment," Economic Development Quarterly, , vol. 30(3), pages 215-231, August.
    14. Josephson, Anna & Michler, Jeffrey D., 2018. "Viewpoint: Beasts of the field? Ethics in agricultural and applied economics," Food Policy, Elsevier, vol. 79(C), pages 1-11.
    15. Armstrong, J. Scott, 2011. "Illusions in Regression Analysis," MPRA Paper 81663, University Library of Munich, Germany.
    16. William Bosshardt & Peter E. Kennedy, 2011. "Data Resources and Econometric Techniques," Chapters, in: Gail M. Hoyt & KimMarie McGoldrick (ed.), International Handbook on Teaching and Learning Economics, chapter 35, Edward Elgar Publishing.
    17. Arvydas Jadevicius & Brian Sloan & Andrew Brown, 2013. "Property Market Modelling and Forecasting: A Case for Simplicity," ERES eres2013_10, European Real Estate Society (ERES).
    18. Kathryn Graddy & Peter E. Kennedy, 2006. "When are Supply and Demand Determined Recursively Rather than Simultaneously? Another look at the Fulton Fish Market Data," Economics Series Working Papers 297, University of Oxford, Department of Economics.
    19. Kaffine, Daniel T. & Davis, Graham A., 2017. "A multi-row deletion diagnostic for influential observations in small-sample regressions," Computational Statistics & Data Analysis, Elsevier, vol. 108(C), pages 133-145.
    20. Siddhartha K. RASTOGI, 2017. "What’s a Cricketer’s Worth? Predicting Bid Prices for Indian Premier League Auctions," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 127-133.

    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:sae:toueco:v:20:y:2014:i:1:p:51-60. 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: SAGE Publications (email available below). General contact details of provider: .

    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.