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The Economic Value of Hiking: Further Considerations of Opportunity Cost of Time in Recreational Demand Models

Published online by Cambridge University Press:  28 April 2015

James F. Casey ,
Tomislav Vukina  and
Leon E. Danielson
James F. Casey
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University
Tomislav Vukina
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University
Leon E. Danielson
Affiliation:
Department of Agricultural and Resource Economics, North Carolina State University
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Abstract

The paper tests two alternative specifications for the opportunity cost of time in travel cost models. The standard travel cost survey design is enriched to include a contingent valuation type question about peoples' willingness to accept compensation to forgo a precisely defined recreational experience. It is hypothesized that individually revealed value of time more appropriately reflects the opportunity costs of time associated with a particular aspect of recreation than the wage rate which measures the trade-off between work and leisure generally. The results seem to indicate a better overall fit for the models with the elicited value of individual consumer's time than for the models with the more traditional hourly earnings (wage rates). The importance of the correct measurement of the opportunity cost time is illustrated by showing that estimated consumer surpluses based on two different value of time measurements differ significantly.

Keywords

recreation demandtravel cost modelvalue of time
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 2 , December 1995 , pp. 658 - 668
Copyright
Copyright © Southern Agricultural Economics Association 1995

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