Short run constraints and the increasing marginal value of time in recreation

Raymond B. Palmquist, Daniel J. Phaneuf, V. Kerry Smith

Research output: Contribution to journalArticle

19 Scopus citations

Abstract

Leisure activities such as local recreation trips usually take place in discrete blocks of time that are surrounded by time devoted to other commitments. It can be costly to transfer time between blocks to allow for longer outings. These observations affect the value of time within those blocks and suggest that traditional methods for valuing time using labor markets miss important considerations. This paper presents a new model for time valuation that uses non-employment time commitments to infer the shadow value of time spent in recreation. A unique survey that elicited revealed and stated preference data on household time allocation is used to implement the model. The results support the conclusion that there is an increasing marginal value of time for recreation as the trip length increases.

Original languageEnglish (US)
Pages (from-to)19-41
Number of pages23
JournalEnvironmental and Resource Economics
Volume46
Issue number1
DOIs
StatePublished - May 2010

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Keywords

  • Choice margins
  • Local recreation outings
  • Opportunity cost of time
  • Time allocation

ASJC Scopus subject areas

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

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