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Time and the Recreational Demand Model
Author(s) -
Bockstael Nancy E.,
Strand Ivar E.,
Hanemann W. Michael
Publication year - 1987
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 - 10.2307/1242279
Subject(s) - economics , recreation , demand curve , microeconomics , variable (mathematics) , welfare , utility maximization , maximization , wage , opportunity cost , econometrics , function (biology) , variable cost , sample (material) , labour economics , mathematical economics , mathematics , market economy , mathematical analysis , chemistry , chromatography , evolutionary biology , political science , law , biology
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.