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

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  • 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.

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  • 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
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    4. 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.
    5. 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.
    6. Xin Yang & Michael Burton & Yinying Cai & Anlu Zhang, 2015. "Exploring Heterogeneous Preference for Farmland Non-market Values in Wuhan, Central China," Sustainability, MDPI, Open Access Journal, vol. 8(1), pages 1-13, December.
    7. 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.
    8. 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.
    9. 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.
    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. 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.
    12. 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.
    13. 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.
    14. repec:gam:jsusta:v:8:y:2015:i:1:p:12:d:61147 is not listed on IDEAS
    15. 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.
    16. 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.
    17. 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.

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

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