Premium
A Note on Estimating Nested Constant Elasticity of Substitution Preferences for Outdoor Recreation
Author(s) -
Haefen Roger H.,
Phaneuf Daniel J.
Publication year - 2003
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/1467-8276.00129
Subject(s) - multinomial distribution , recreation , econometrics , substitution (logic) , constant elasticity of substitution , elasticity of substitution , elasticity (physics) , constant (computer programming) , economics , price elasticity of demand , welfare , mathematics , statistics , computer science , microeconomics , production (economics) , market economy , materials science , political science , law , composite material , programming language
A generalized version of a well‐known statistical result is used to suggest an alternative strategy for estimating nested constant elasticity of substitution preferences for recreation demand. Parameter and welfare estimates from nested constant elasticity of substitution count data demand system models are presented and compared to estimates from the multinomial approaches developed previously. A significant advantage of the count data estimation strategy over the multinomial‐based approaches is that the analyst avoids the difficulties associated with choice occasion specification and interpretation.