nep-tur 2017-11-12 papers

on Tourism Economics

Issue of 2017–11–12
one paper chosen by
Laura Vici, Università di Bologna

Causality in direct air services and tourism demand By Tay-Ryang Koo; Christine Lim; Frédéric Dobruszkes

Causality in direct air services and tourism demand

By:	Tay-Ryang Koo; Christine Lim; Frédéric Dobruszkes
Abstract:	Unlike income or relative prices, air transport attributes and tourism demand on a given route can be endogenous. Using instrumental variables, this study attempted to account for the circular causality in estimating the effect of direct air service on tourism demand. Although we found evidence of endogeneity, the nature of the circular causation is context-specific; while direct air service can be regarded as an exogenous variable in one direction, it can have an endogenous relationship on the other. Findings emphasise the need to explicate information about the network nature of transportation and its endogenous relations with tourism.
Keywords:	Air transport liberalization; Direct air services; Endogeneity; Instrumental variable; LIML estimator; Tourism demand
Date:	2017
URL:	https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/259047

This nep-tur issue is ©2017 by Laura Vici. 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 https://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.

NEP’s infrastructure is sponsored by the Griffith Business School of Griffith University in Australia.