Modeling recreation demand in the presence of unobservable travel costs: Toward a travel price model

Jeffrey Englin, J. S. Shonkwiler

Research output: Contribution to journalArticle

76 Scopus citations

Abstract

An important issue in the application of travel cost models is the construction of a travel cost variable. This paper develops an econometric approach that views travel costs as an unobserved latent variable. The latent variable approach utilizes indicators to capture the role of individual travel costs in recreational demand models. The latent variables approach has at least two advantages over conventional approaches. One, the indicators can include both traditional components such as time and distance and non-traditional components such as the scenic beauty. Second, the estimation procedure results in each indicator being valued in dollar terms.

Original languageEnglish (US)
Pages (from-to)368-377
Number of pages10
JournalJournal of Environmental Economics and Management
Volume29
Issue number3
DOIs
StatePublished - Nov 1995
Externally publishedYes

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ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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