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Recreation Demand Choices and Revealed Values of Leisure Time
Author(s) -
Larson Douglas M.,
Shaikh Sabina L.
Publication year - 2004
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1093/ei/cbh059
Subject(s) - marginal value , economics , recreation , value (mathematics) , marginal utility , microeconomics , consistency (knowledge bases) , function (biology) , econometrics , wage , work (physics) , marginal cost , value of time , labour economics , statistics , mathematics , travel time , mechanical engineering , evolutionary biology , political science , transport engineering , law , biology , engineering , geometry
An approach to jointly estimating an endogenous marginal value of time function and a recreation budget share equation is developed. The specification requirements for the marginal value of time function, to ensure consistency with the maintained hypothesis of two binding constraints on choice, are articulated. The estimating model consistent with these requirements that nests several conventional treatments of the marginal value of time is highly significant. The general endogenous marginal value of time model outperforms other approaches and shows a more complex relationship between the marginal value of time and the individual's wage than has been used in previous work. (JEL J22 , Q26 )