Land Economics · 1995 · 122 citations · 19 references
Social SciencesBusiness EconomicsEconomicsLabor EconomicsResource ValuationTravel Demand ModelingDemand TheoryOpportunity CostTransportation EconomicsTravel Cost AnalysisTravel DemandValuation Of Nonmarket BenefitsBenefit ValuationOpportunity Cost ValuationOpportunity TimeRecreation Demand EstimationTime Opportunity CostTravel Demand AnalysisTravel Time ValuationValue Of Travel Time
The opportunity cost of time is a major component of the price variable in travel cost demand models, and accurate measurement is essential for estimating demand and valuing nonmarket resources. The study tests whether income-based opportunity time cost models are adequate by comparing them to a disequilibrium labor market model for recreationists. The authors empirically compare income-based models to a pooled disequilibrium labor market model. JEL classification: Q21.
The opportunity cost of time is usu- ally a significant part of the price variable in the travel cost demand model. Thus, its accurate mea- surement is important to the estimation of demand and benefit valuation for nonmarket resources. This paper empirically tests models which assume that income is the basis for opportunity time cost with an alternative pooled model based on a disequi- librium labor market for some recreationists. Ac- ceptance of the hypothesis that disequilibrium mod- els may be necessary for some individuals implies increased survey information requirements so that the appropriate model can be applied to each indi- vidual. (JEL Q21)
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