Premium
A micro‐econometric analysis of vacation behaviour
Author(s) -
Van Soest Arthur,
Kooreman Peter
Publication year - 1987
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950020305
Subject(s) - econometrics , economics , econometric model , econometric analysis , income elasticity of demand , variable (mathematics) , elasticity (physics) , microeconomics , mathematics , mathematical analysis , materials science , composite material
We present a micro‐econometric limited dependent variable model, which simultaneously explains the decision whether to go on vacation or not, the choice of destination and the decision on the level of the vacation expenditures. The model has been estimated on the basis of a cross‐section of Dutch households; we find a striking difference in income elasticity between domestic vacations and vacations abroad, and a large impact of owning certain durables (such as a boat) on the choice of destination. To illustrate the potential of the model, some simulations are performed.