IDEAS home Printed from https://ideas.repec.org/a/taf/recsxx/v24y2021i1p103-113.html
   My bibliography  Save this article

Habit persistence in tourist sub-industries

Author

Listed:
  • Adrian R. Fleissig

Abstract

Habit persistence across six U.S. tourism sub-industries is estimated using a dynamic forward looking model. Estimates show that habits largely determine current expenditure for air transportation, shopping, accommodation, and other transportation. Estimated uncompensated price elasticities find that air transport and accommodation are price elastic in the short-run and long-run. Shopping is price inelastic in the short-run but price elastic in the long-run. An important result is that air transportation and other transportation are elastic substitutes for price changes in air transportation but inelastic substitutes for price changes in other related transportation. Estimates show that expenditure across most of the tourist sub-industries is closely related because they are gross complements. Food and beverages are necessities, price inelastic, and relatively unresponsive to changes in expenditure across the sub-industries. The estimates show that policy makers and tourist marketing should account for habit persistence and differences between the short-run and long-run.

Suggested Citation

  • Adrian R. Fleissig, 2021. "Habit persistence in tourist sub-industries," Journal of Applied Economics, Taylor & Francis Journals, vol. 24(1), pages 103-113, January.
  • Handle: RePEc:taf:recsxx:v:24:y:2021:i:1:p:103-113
    DOI: 10.1080/15140326.2021.1896294
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15140326.2021.1896294
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/15140326.2021.1896294?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 search for a different version of it.

    More about this item

    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:taf:recsxx:v:24:y:2021:i:1:p:103-113. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recs .

    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.