IDEAS home Printed from https://ideas.repec.org/a/ucp/mresec/doi10.1086-740949.html

Noisy Wage Fractions and Cost Insignificance in Recreation Demand Models

Author

Listed:
  • Russel A. Dame
  • Daniel K. Lew
  • David M. Kling

Abstract

Economists modeling recreation decisions commonly assume that the shadow value of time is a specific proportion of the wage rate. This ignores idiosyncrasies that may arise owing to labor market disequilibrium or idiosyncratic differences in constraints on time and marginal utilities of work and leisure. Economists may account for these sources of heterogeneity by estimating the proportion of the wage rate as a random parameter, that is, a “noisy wage fraction.” We apply a noisy wage fraction approach that allows for multiple noisy wage fractions using a latent class modeling framework. This framework also allows us to control for individuals who, from the researcher’s perspective, are not influenced by travel costs, which we refer to as “cost insignificant” behavior. We apply this model to Alaska saltwater fishing trip data and find support for the presence of cost insignificance behavior (4% of the sample), but less evidence of multiple noisy wage fractions.

Suggested Citation

  • Russel A. Dame & Daniel K. Lew & David M. Kling, 2026. "Noisy Wage Fractions and Cost Insignificance in Recreation Demand Models," Marine Resource Economics, University of Chicago Press, vol. 41(3), pages 127-146.
    • Handle: RePEc:ucp:mresec:doi:10.1086/740949
    DOI: 10.1086/740949
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/740949
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/740949
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/740949?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

    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:ucp:mresec:doi:10.1086/740949. 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: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/MRE .

    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.