Journal of Tourism and Recreation

Journal of Tourism and Recreation

ISSN: 2368-2655 (Print)    ISSN: 2368-2663 (Online)

Volume 2 (2015), No. 2, Pages 1-6

DOI: 10.12735/jotr.v2i2p01

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Cautionary Note on Computing Site-Specific Recreational Demand Elasticities and Welfare Estimates

Albert A. Okunade1  Thierry W. Nianogo1 

1Department of Economics, University of Memphis, Memphis TN, 38152, USA

URL: http://dx.doi.org/10.12735/jotr.v2i2p01

To Cite this Article     Article Views: 512     Downloads: 377  Since deposited on 2015-09-17

Abstract

This cautionary note achieves three important integrative goals. First is justifying the need for applied agricultural and resource economists to increasingly use flexible modeling techniques, such as the Box-Cox power family of transformations model, for reducing specification bias in recreational demand estimation. Second is demonstrating that findings from fitting inflexible functional form models tend to generate incorrect public policies on consumer welfare estimates. Third is establishing the importance of evaluating the demand elasticity estimates not only at the mean data values but also at the different data points, including at extreme data values, in the observed data space.

Keywords: Box-Cox, elasticity, functional form, recreational demand

To Cite this Article: Okunade, A. A., & Nianogo, T. W. (2015). Cautionary note on computing site-specific recreational demand elasticities and welfare estimates. Journal of Tourism and Recreation, 2(2), 1-6. http://dx.doi.org/10.12735/jotr.v2i2p01

Copyright © Albert A. Okunade & Thierry W. Nianogo

Creative Commons License
This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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Cautionary Note on Computing Site-Specific Recreational Demand Elasticities and Welfare Estimates
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