RT Journal Article
SR Electronic
T1 Hedonic Onsight Cost Model of Recreation Demand
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 253
OP 267
DO 10.3368/le.83.2.253
VO 83
IS 2
A1 Landry, Craig E.
A1 McConnell, Kenneth E.
YR 2007
UL http://le.uwpress.org/content/83/2/253.abstract
AB For many recreational activities onsite pecuniary costs can be a significant portion of the cost of a recreational trip. Onsite expenditures, however, often depend upon endogenous quality choices made by the household. We formulate a recreation demand model that formally accounts for household selection of quality of onsite time. Household behavior is constrained by income, prices, and the onsite hedonic price schedule. Assuming complete optimization, a reduced form Marshallian demand curve for recreation trips still results and a specialized version of Roy’s Identity provides a basis for welfare analysis. Instrumenting for endogenous quality choices does not improve demand estimation. (JEL Q26, Q51)