Recreation Demand Choices and Revealed Values of Leisure Time |
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| Authors: | Douglas M Larson Sabina L Shaikh |
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| Institution: | Larson:;Professor, Department of Agricultural and Resource Economics, and Member of the Giannini Foundation of Agricultural Economics, University of California, Davis, CA 95616. Phone 1–530–752–3586, Fax 1–530–752–3586, E-mail Shaikh:;Senior Research Economist, RCF Economic and Financial Consulting, 333 N. Michigan Avenue, Suite 804, Chicago, IL 60601. Phone 1–312–431–1540, Fax 1–312–431–1170, E-mail |
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| Abstract: | An approach to jointly estimating an endogenous marginal value of time function and a recreation budget share equation is developed. The specification requirements for the marginal value of time function, to ensure consistency with the maintained hypothesis of two binding constraints on choice, are articulated. The estimating model consistent with these requirements that nests several conventional treatments of the marginal value of time is highly significant. The general endogenous marginal value of time model outperforms other approaches and shows a more complex relationship between the marginal value of time and the individual's wage than has been used in previous work. (JEL J22 , Q26 ) |
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