Time and the Recreational Demand Model

Nancy E. Bockstael, Ivar E. Strand, W. Michael Hanemann

Research output: Contribution to journalArticle

148 Scopus citations

Abstract

In this paper, a theoretically consistent approach to including time costs in recreational demand models is developed. The demand model is conditional on the recreationist's labor market situation. For individuals at corner solutions in the labor market, utility maximization is subject to two constraints, leading to a demand function with travel costs and travel time as independent variables. With interior solutions in the labor market, time is valued at the wage rate and combined with travel costs to produce one “full cost” variable. In an illustration, welfare measures based on the new model are estimated for a sample of sportfishermen.

Original languageEnglish (US)
Pages (from-to)293-302
Number of pages10
JournalAmerican Journal of Agricultural Economics
Volume69
Issue number2
DOIs
StatePublished - May 1987
Externally publishedYes

Keywords

  • Opportunity cost
  • Recreational demand
  • Time costs
  • Travel cost model

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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