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The Travel Cost Model for Lake Recreation: A Comparison of Two Methods for Incorporating Site Quality and Substitution Effects
Author(s) -
Caulkins Peter P.,
Bishop Richard C.,
Bouwes Nicolaas W.
Publication year - 1986
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 - 10.2307/1241430
Subject(s) - recreation , multinomial logistic regression , substitution (logic) , quality (philosophy) , econometrics , computer science , economics , statistics , mathematics , ecology , philosophy , epistemology , biology , programming language
This paper empirically illustrates how different assumptions regarding recreationists' decision‐making behavior affect the predicted changes in recreational activity given a water quality improvement. A multinomial logit model, which reallocates visits away from other sites to the improved site, predicts a smaller outward shift of the recreationist's demand curve than the more traditional travel cost model, which does not assume any reallocation of visits among sites.