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A Two-Constraint Almost Ideal Demand Model of Recreation and Donations

  • Sabina L. Shaikh

    (RCF Economic and Financial Consulting)

  • Douglas M. Larson

    (University of California-Davis)

Registered author(s):

    An incomplete demand system is developed for recreation and donation choices, subject to both money and time constraints. The model results in a three-good system, with an endogenous marginal value of time for estimation. The model is implemented by adapting Deaton and Muellbauer's locally flexible almost ideal demand system to a two-constraint recreation model of trips and donations of California whale watchers. Exact welfare measures are calculated for changes in costs, as well as for whale population changes. Results indicate a use and a nonuse component of overall willingness to pay for increases in environmental quality. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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    Article provided by MIT Press in its journal Review of Economics and Statistics.

    Volume (Year): 85 (2003)
    Issue (Month): 4 (November)
    Pages: 953-961

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    Handle: RePEc:tpr:restat:v:85:y:2003:i:4:p:953-961
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    2. Michael D. Creel, 1997. "Welfare Estimation Using The Fourier Form: Simulation Evidence For The Recreation Demand Case," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 88-94, February.
    3. Douglas M. Larson & Sabina L. Shaikh, 2001. "Empirical Specification Requirements for Two-Constraint Models of Recreation Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 428-440.
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    10. Hanemann, Michael & Morey, Edward, 1992. "Separability, partial demand systems, and consumer's surplus measures," Journal of Environmental Economics and Management, Elsevier, vol. 22(3), pages 241-258, May.
    11. Feather, Peter M & Shaw, W Douglas, 2000. "The Demand for Leisure Time in the Presence of Constrained Work Hours," Economic Inquiry, Western Economic Association International, vol. 38(4), pages 651-61, October.
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