IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v86y2010iv1p800-816.html
   My bibliography  Save this article

A Latent Class Approach to Modeling Endogenous Spatial Sorting in Zonal Recreation Demand Models

Author

Listed:
  • Kenneth A. Baerenklau

Abstract

A method for incorporating unobserved heterogeneity into aggregate count data frameworks is presented and used to control for endogenous spatial sorting in zonal recreation models. The method is based on latent class analysis, which has become a popular tool for analyzing heterogeneous preferences with individual data but has not yet been applied to aggregate count data. The method is tested using data on backcountry hikers for a southern California study site and performs well for relatively small numbers of classes. The latent class model produces substantially smaller welfare estimates compared to a constrained version that assumes homogeneity throughout the population.

Suggested Citation

  • Kenneth A. Baerenklau, 2010. "A Latent Class Approach to Modeling Endogenous Spatial Sorting in Zonal Recreation Demand Models," Land Economics, University of Wisconsin Press, vol. 86(4), pages 800-816.
    • Handle: RePEc:uwp:landec:v:86:y:2010:iv:1:p:800-816
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/86/4/800
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeffrey T. LaFrance, 1990. "Incomplete Demand Systems And Semilogarithmic Demand Models," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(2), pages 118-131, August.
    2. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
    3. Morduch, Jonathan J. & Stern, Hal S., 1997. "Using mixture models to detect sex bias in health outcomes in Bangladesh," Journal of Econometrics, Elsevier, vol. 77(1), pages 259-276, March.
    4. LaFrance, Jeffrey T. & Beatty, Timothy K.M. & Pope, Rulon D., 2005. "Aggregation Theory for Incomplete Systems," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt0z13s7js, Department of Agricultural & Resource Economics, UC Berkeley.
    5. Jeffrey Englin & Peter Boxall & David Watson, 1998. "Modeling Recreation Demand in a Poisson System of Equations: An Analysis of the Impact of International Exchange Rates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 255-263.
    6. Wedel, M, et al, 1993. "A Latent Class Poisson Regression Model for Heterogeneous Count Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 397-411, Oct.-Dec..
    7. von Haefen, Roger H., 2002. "A Complete Characterization Of The Linear, Log-Linear, And Semi-Log Incomplete Demand System Models," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-39, December.
    8. Owen, Ann L. & Videras, Julio R., 2007. "Culture and public goods: The case of religion and the voluntary provision of environmental quality," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 162-180, September.
    9. Daniel Hellerstein, 1995. "Welfare Estimation Using Aggregate and Individual-Observation Models: A Comparison Using Monte Carlo Techniques," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 620-630.
    10. Bill Provencher & Rebecca Moore, 2006. "A Discussion of “Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model”," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 117-124, May.
    11. Danielle Hagerty & Klaus Moeltner, 2005. "Specification of Driving Costs in Models of Recreation Demand," Land Economics, University of Wisconsin Press, vol. 81(1).
    12. Moeltner, Klaus, 2003. "Addressing aggregation bias in zonal recreation models," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 128-144, January.
    13. von Haefen, Roger H. & Phaneuf, Daniel J., 2003. "Estimating preferences for outdoor recreation:: a comparison of continuous and count data demand system frameworks," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 612-630, May.
    14. Bill Provencher & Kenneth A. Baerenklau & Richard C. Bishop, 2002. "A Finite Mixture Logit Model of Recreational Angling with Serially Correlated Random Utility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1066-1075.
    15. Riccardo Scarpa & Mara Thiene, 2005. "Destination Choice Models for Rock Climbing in the Northeastern Alps: A Latent-Class Approach Based on Intensity of Preferences," Land Economics, University of Wisconsin Press, vol. 81(3).
    16. Joseph A. Herriges & Catherine L. Kling (ed.), 1999. "Valuing Recreation and the Environment," Books, Edward Elgar Publishing, number 1315.
    17. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    18. Stoker, Thomas M, 1993. "Empirical Approaches to the Problem of Aggregation Over Individuals," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1827-1874, December.
    19. Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, May.
    20. Jeffrey Englin & Thomas Holmes & Rebecca Niell, 2006. "Alternative Models of Recreational Off-Highway Vehicle Site Demand," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(4), pages 327-338, December.
    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. Nielsen, Anne Sofie Elberg & Lundhede, Thomas Hedemark & Jacobsen, Jette Bredahl, 2016. "Local consequences of national policies - A spatial analysis of preferences for forest access reduction," Forest Policy and Economics, Elsevier, vol. 73(C), pages 68-77.
    2. Stephen Hynes & William Greene, 2013. "A Panel Travel Cost Model Accounting for Endogenous Stratification and Truncation: A Latent Class Approach," Land Economics, University of Wisconsin Press, vol. 89(1), pages 177-192.
    3. Hynes, Stephen & Greene, William, 2012. "Panel Travel Cost Count Data Models for On-Site Samples that Incorporate Unobserved Heterogeneity with Respect to the Impact of the Explanatory Variables," Working Papers 148834, National University of Ireland, Galway, Socio-Economic Marine Research Unit.
    4. Ian B. Page & Erik Lichtenberg & Monica Saavoss, 2020. "Estimating Willingness to Pay from Count Data When Survey Responses are Rounded," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(3), pages 657-675, March.
    5. Jørgensen, Sisse Liv & Olsen, Søren Bøye & Ladenburg, Jacob & Martinsen, Louise & Svenningsen, Stig Roar & Hasler, Berit, 2013. "Spatially induced disparities in users' and non-users' WTP for water quality improvements—Testing the effect of multiple substitutes and distance decay," Ecological Economics, Elsevier, vol. 92(C), pages 58-66.
    6. Kento Komatsubara & Alexander Ryota Keeley & Shunsuke Managi, 2023. "Revisiting the Value of Various Ecosystems: Considering Spatiality and Disaster Concern," Sustainability, MDPI, vol. 15(4), pages 1-27, February.
    7. Mikołaj Czajkowski & Wiktor Budziński & Danny Campbell & Marek Giergiczny & Nick Hanley, 2017. "Spatial Heterogeneity of Willingness to Pay for Forest Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 705-727, November.
    8. Weiwei Liu & Kevin J. Egan, 2019. "A Semiparametric Smooth Coefficient Estimator for Recreation Demand," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1163-1187, November.
    9. Xin Yang & Michael Burton & Yinying Cai & Anlu Zhang, 2015. "Exploring Heterogeneous Preference for Farmland Non-market Values in Wuhan, Central China," Sustainability, MDPI, vol. 8(1), pages 1-13, December.
    10. Abildtrup, Jens & Garcia, Serge & Olsen, Søren Bøye & Stenger, Anne, 2013. "Spatial preference heterogeneity in forest recreation," Ecological Economics, Elsevier, vol. 92(C), pages 67-77.
    11. Jee W. Hwang & Chun Kuang & Okmyung Bin, 2019. "Are all Homeowners Willing to Pay for Better Schools? ─ Evidence from a Finite Mixture Model Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 58(4), pages 638-655, May.
    12. Stephen Hynes & William Greene, 2016. "Preference Heterogeneity in Contingent Behaviour Travel Cost Models with On-site Samples: A Random Parameter vs. a Latent Class Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 348-367, June.
    13. Egan, Kevin J. & Corrigan, Jay R. & Dwyer, Daryl F., 2015. "Three reasons to use annual payments in contingent valuation surveys: Convergent validity, discount rates, and mental accounting," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 123-136.
    14. Kavita Sardana, 2021. "Double truncation in choice-based sample: An application of on-site survey sample," Economics Bulletin, AccessEcon, vol. 41(2), pages 781-787.
    15. José Grisolía & Kenneth Willis, 2012. "A latent class model of theatre demand," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 36(2), pages 113-139, May.
    16. Balderas Torres, Arturo & MacMillan, Douglas C. & Skutsch, Margaret & Lovett, Jon C., 2015. "Reprint of ‘Yes-in-my-backyard’: Spatial differences in the valuation of forest services and local co-benefits for carbon markets in México," Ecological Economics, Elsevier, vol. 117(C), pages 283-294.
    17. Balderas Torres, Arturo & MacMillan, Douglas C. & Skutsch, Margaret & Lovett, Jon C., 2015. "‘Yes-in-my-backyard’: Spatial differences in the valuation of forest services and local co-benefits for carbon markets in México," Ecological Economics, Elsevier, vol. 109(C), pages 130-141.
    18. Léa Tardieu, 2017. "The need for integrated spatial assessments in ecosystem service mapping," Review of Agricultural, Food and Environmental Studies, Springer, vol. 98(3), pages 173-200, December.

    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. Baerenklau, Kenneth A. & González-Cabán, Armando & Paez, Catrina & Chavez, Edgar, 2010. "Spatial allocation of forest recreation value," Journal of Forest Economics, Elsevier, vol. 16(2), pages 113-126, April.
    2. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    3. Beville, Stephen T. & Kerr, Geoffrey N. & Hughey, Kenneth F.D., 2012. "Valuing impacts of the invasive alga Didymosphenia geminata on recreational angling," Ecological Economics, Elsevier, vol. 82(C), pages 1-10.
    4. Angel Bujosa & Antoni Riera & Robert Hicks, 2010. "Combining Discrete and Continuous Representations of Preference Heterogeneity: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(4), pages 477-493, December.
    5. Moeltner, Klaus, 2003. "Addressing aggregation bias in zonal recreation models," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 128-144, January.
    6. Landry, Craig E. & Liu, Haiyong, 2009. "A semi-parametric estimator for revealed and stated preference data--An application to recreational beach visitation," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 205-218, March.
    7. William Breffle & Edward Morey & Jennifer Thacher, 2011. "A Joint Latent-Class Model: Combining Likert-Scale Preference Statements With Choice Data to Harvest Preference Heterogeneity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(1), pages 83-110, September.
    8. Alegre, Joaquín & Mateo, Sara & Pou, Llorenç, 2011. "A latent class approach to tourists’ length of stay," Tourism Management, Elsevier, vol. 32(3), pages 555-563.
    9. Kloos, Julia & Tsegai, Daniel W., 2009. "Preferences for domestic water services in the Middle Olifants sub-basin of South Africa," Discussion Papers 49970, University of Bonn, Center for Development Research (ZEF).
    10. Kuriyama, Koichi & Michael Hanemann, W. & Hilger, James R., 2010. "A latent segmentation approach to a Kuhn-Tucker model: An application to recreation demand," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 209-220, November.
    11. Moore, Rebecca, 2008. "Using Attitudes to Characterize Heterogeneous Preferences," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6488, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Danielle Hagerty & Klaus Moeltner, 2005. "Specification of Driving Costs in Models of Recreation Demand," Land Economics, University of Wisconsin Press, vol. 81(1).
    13. Eric Ruto & Guy Garrod & Riccardo Scarpa, 2008. "Valuing animal genetic resources: a choice modeling application to indigenous cattle in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 89-98, January.
    14. Thiene, Mara & Scarpa, Riccardo & Longo, Alberto & Hutchinson, William George, 2018. "Types of front of pack food labels: Do obese consumers care? Evidence from Northern Ireland," Food Policy, Elsevier, vol. 80(C), pages 84-102.
    15. Hilger, James & Englin, Jeffrey, 2009. "Utility theoretic semi-logarithmic incomplete demand systems in a natural experiment: Forest fire impacts on recreational values and use," Resource and Energy Economics, Elsevier, vol. 31(4), pages 287-298, November.
    16. Morey, Edward & Thiene, Mara & De Salvo, Maria & Signorello, Giovanni, 2008. "Using attitudinal data to identify latent classes that vary in their preference for landscape preservation," Ecological Economics, Elsevier, vol. 68(1-2), pages 536-546, December.
    17. Leif E. Anderson & Mark L. Plummer, 2017. "Recreational Demand for Shellfish Harvesting Under Environmental Closures," Marine Resource Economics, University of Chicago Press, vol. 32(1), pages 43-57.
    18. Meldrum, James R., 2015. "Comparing different attitude statements in latent class models of stated preferences for managing an invasive forest pathogen," Ecological Economics, Elsevier, vol. 120(C), pages 13-22.
    19. Tabi, Andrea & del Saz-Salazar, Salvador, 2015. "Environmental damage evaluation in a willingness-to-accept scenario: A latent-class approach based on familiarity," Ecological Economics, Elsevier, vol. 116(C), pages 280-288.
    20. Mara Thiene & Riccardo Scarpa & Jordan Louviere, 2015. "Addressing Preference Heterogeneity, Multiple Scales and Attribute Attendance with a Correlated Finite Mixing Model of Tap Water Choice," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 637-656, November.

    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    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:uwp:landec:v:86:y:2010:iv:1:p:800-816. 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: the person in charge (email available below). General contact details of provider: http://le.uwpress.org/ .

    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.