Premium
Individual Travel Cost Method: Estimation and Benefit Assessment with a Discrete and Possibly Grouped Dependent Variable
Author(s) -
Dobbs Ian M.
Publication year - 1993
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 - 10.2307/1242956
Subject(s) - variable (mathematics) , estimation , econometrics , variable cost , falling (accident) , computer science , instrumental variable , variables , statistics , discrete choice , economics , mathematics , microeconomics , psychology , mathematical analysis , management , psychiatry
Abstract The trip/visit variable in the individual travel cost method is often regarded as discrete. Furthermore, it is often reported in surveys as a grouped variable (the number of visits reported falling into one of several classes). This paper develops a travel cost model which takes account of discreteness and grouping in both demand and benefit estimation. A case study and associated simulations are then reported which indicate the potential extent of bias that may arise from ignoring discreteness/grouping in demand and benefit estimation. The information loss involved in varying the size of visit classes is also examined.