nep-tur New Economics Papers
on Tourism Economics
Issue of 2007‒10‒13
two papers chosen by
Antonello Scorcu
University of Bologna

  1. Extension of the Traditional Travel Cost Method to a Collective Framework: An Empirical Application By Marcella Veronesi; Martina Menon; Federico Perali
  2. Price of recreational products and the exchange rate: an empirical investigation on US data By Cellini, Roberto; Paolino, Alessandro

  1. 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
  2. By: Cellini, Roberto; Paolino, Alessandro
    Abstract: The paper analyses the cointegration relationships and the causal links between the exchange rate of the US Dollar, on the one side, and different price indices of US products on the other side. Data are of monthly frequency and cover a period of two or three decades. We show that the exchange rate cointegrate with the Consumer Price Index and with the prices indices of several agricultural, manufactured and service goods; moreover a one-direction causal link is present, running from price to exchange rate. On the opposite, cointegrating relationships between exchange rate and price indices do not exist in the case of recreational products with “cultural” content. Tentative theoretical explanations are proposed.
    Keywords: Price Index; Exchange Rate; Cointegration; Causality
    JEL: Z11 C22 F13
    Date: 2007–10

This nep-tur issue is ©2007 by Antonello Scorcu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.