nep-tur New Economics Papers
on Tourism Economics
Issue of 2013‒06‒24
three papers chosen by
Laura Vici
Universita' di Bologna

  1. Determinants of Individual Tourist Expenditure as a Network: Empirical Findings from Uruguay By Antonio Abbruzzo; Juan Gabriel Brida; Raffaele Scuderi
  2. Modeling Long Overnight Trips by Chaining Recreation Sites By Chen, Min; Lupi, Frank
  3. Using a Control Function to Resolve the Travel Cost Endogeneity Problem in Recreation Demand Models By Melstrom, Richard T.; Lupi, Frank

  1. By: Antonio Abbruzzo (DSEAS, University of Palermo); Juan Gabriel Brida (School of Economics and Management and TOMTE (Competence Centre in Tourism Management and Tourism Economics), Free University of Bozen/Bolzano); Raffaele Scuderi (Free University of Bolzano‐Bozen, School of Economics and Management.)
    Abstract: Past literature investigating the determinants of tourist expenditure have made a wide use of econometric models to assess conditional relationships of a set of regressors in predicting individual spending. However such techniques provide little or no information about the relationships within the total set of regressors as determinants of such expenditure. This paper applies graphical models to investigate the links that occur within a set of variables derived from an official survey of Uruguayan statistics of visitor expenditures. Symmetric conditional dependence structures within socio-demographic and trip-related variables are first investigated. Then a chain graph assessment of asymmetric conditional dependencies of these two categories of variables is used to explain individual expenditure items. The output is displayed through graphs that allow for an easy interpretation of the data. The results highlight the marginal role of socio-demographic variables and the direct importance of accommodation type and destination as determinants of tourist expenditure.
    Keywords: tourist expenditure, graphical model, chain graph, log-linear graphical model
    JEL: C11 C21 C45 L83
    Date: 2013–06
  2. By: Chen, Min; Lupi, Frank
    Keywords: Community/Rural/Urban Development, Institutional and Behavioral Economics, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods,
    Date: 2013
  3. By: Melstrom, Richard T.; Lupi, Frank
    Abstract: This paper proposes using a control function to correct for endogeneity in recreation demand models. The control function approach is contrasted with the method of alternative specific constants (ASCs), which has been promoted in prior research. As an application, we consider the case of travel cost endogeneity in the demand for Great Lakes recreational fishing. Using data on Michigan anglers, we employ a random utility model of site choice. We show that either ASCs or the control function will correct for travel cost endogeneity, although we find that the model with ASCs produces significantly weaker results. Overall, compared with traditional approaches control functions may offer a more flexible means to eliminate endogeneity in recreation demand models.
    Keywords: Recreation demand, random utility model, travel cost method, travel cost endogeneity, control function, alternative specific constants, recreational fishing, Environmental Economics and Policy, Research Methods/ Statistical Methods,
    Date: 2013

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