| By: |
Marcella Veronesi (Corresponding author, Università di Verona and University of Maryland; Dipartimento di Scienze economiche (Università di Verona) and Department of Agricultural and Resource Economics (University of Maryland));
Martina Menon (Università di Verona; Dipartimento di Scienze economiche (Università di Verona));
Federico Perali (Università di Verona; Dipartimento di Scienze economiche (Università di Verona)) |
| Abstract: |
This study proposes a novel approach to estimating a travel cost model that
accounts for intrahousehold resource allocation. We define it ‘Collective
Travel Cost Method’ (CTCM). The technique is based on an analogy borrowed from
the literature of collective household behavior and adapted to the
recreational setting. Knowledge of the travel cost to the recreational site of
each household member allows us to identify the sharing rule within the
household and to estimate a collective Almost Ideal Demand System that takes
into account the role of each member’s preferences for consumption choices and
how resources are allocated within the household. We show how to identify and
estimate welfare measures, such as the equivalent variation (EV), to infer the
Willingness-To-Pay (WTP) to access a natural park of each household member.
Moreover, the development and estimation of the CTCM allows: (1) to test
whether the WTP estimated by the traditional unitary TCM is significantly
different from the WTP estimated by the CTCM; (2) to test whether two spouses
have equal or different WTP to access the recreational site, and (3) whether
the individual WTP estimated by the CTCM is significantly different from the
WTP derived by applying the Contingent Valuation Method (CVM) on the same
sample of individuals. |
| Keywords: |
collective model, compensating variation, equivalent variation, revealed preferences, travel cost method, Willingness-To-Pay. |
| JEL: |
D13 Q26 Q51 |
| Date: |
2007–10 |
| URL: |
http://d.repec.org/n?u=RePEc:ver:wpaper:42&r=tur |