On the Effect of the Great Recession on US Household Expenditures for Entertainment
This paper empirically investigates potential effects of economic recessions on consumers¡¯ decision making process for recreational activities using the Consumer Expenditure Survey (CES) data during the Great Recession. We employ the Probit model to study how changes in income affect the likelihood of making non-zero expenditures on entertainment activities. We also use the Tobit model to assess the income effect on those activities in the presence of censored observations. We found overall statistically significant effects of recessions on leisure activities, which may explain sluggish adjustments of leisure consumption during recessions.
|Date of creation:||Aug 2013|
|Date of revision:|
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- Ateca-Amestoy, Victoria & Serrano-del-Rosal, Rafael & Vera-Toscano, Esperanza, 2008. "The leisure experience," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 64-78, February.
- Jara-Díaz, Sergio R. & Munizaga, Marcela A. & Greeven, Paulina & Guerra, Reinaldo & Axhausen, Kay, 2008. "Estimating the value of leisure from a time allocation model," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 946-957, December.
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