Empirical specification requirements for two-constant models of recreation choice

Empirical specification requirements for two-constant models of recreation choice

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Article ID: iaor20023645
Country: United States
Volume: 83
Issue: 2
Start Page Number: 428
End Page Number: 440
Publication Date: May 2001
Journal: American Journal of Agricultural Economics
Authors: ,
Keywords: behaviour
Abstract:

Two-constraint models are common in recreation-demand analysis because of the important role time can play in consumer choices. Two versions of Rev's identity hold for these models and imply coefficient restrictions on empirical demand functions. The two-constraint restrictions are fully observable and can be expressed in a form analogous to the Slutsky–Hicks equations in single constraint consumer models. Empirical specifications that use full prices and full budgets can be consistent with the two-constraint models, when the marginal value of time is either exogenous or endogenous but models with full prices and money income alone are not.

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