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Expenditure elasticities of the demand for leisure services

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  • Tim Pawlowski
  • Christoph Breuer

Abstract

Although some research has already focused on the analysis of expenditure elasticities of leisure demand, some shortcomings with regard to the content and the underlying theoretical model as well as the applied methods exist. This article aims at avoiding these problems to provide consistent derivatives of leisure service expenditure elasticities. Therefore, a regular demand system is derived from microeconomic duality theory. To implement leisure specific demand factors (i.e. demand- and supply-based sports and recreational opportunities as well as sports and recreational preferences) while still being consistent with neoclassical demand theory, the basic model is extended by applying the demographic translation framework. Data of the continuous household budget survey ( n = 7724) from Germany is used for the estimation of the derived demand system. It is shown how sensitive the results are depending on the applied (censored) regression model: 16 out of 18 analysed services are indicated as luxury goods based on the findings of the Tobit model type I but as necessities based on the findings of the Tobit model type II. Possible implications are presented and discussed.

Suggested Citation

  • Tim Pawlowski & Christoph Breuer, 2012. "Expenditure elasticities of the demand for leisure services," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3461-3477, September.
  • Handle: RePEc:taf:applec:44:y:2012:i:26:p:3461-3477
    DOI: 10.1080/00036846.2011.577021
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    References listed on IDEAS

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    Cited by:

    1. Muñiz, Cristina & Rodríguez, Plácido & Suárez, María J., 2014. "Sports and cultural habits by gender: An application using count data models," Economic Modelling, Elsevier, vol. 36(C), pages 288-297.
    2. Jorge González, 2015. "Estimating income elasticities of leisure activities using cross-sectional categorized data," Documentos de Trabajo dt2015-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    3. repec:eee:spomar:v:20:y:2017:i:5:p:455-467 is not listed on IDEAS
    4. Lera-López, Fernando & Suárez, María José, 2012. "Deporte activo y pasivo: ¿Una relación de conveniencia?/Active and Passive Sport: Is it a Marriage of Convenience?," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 489-512, Agosto.

    More about this item

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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