Abstract
An important issue in the application of travel cost models is the construction of a travel cost variable. This paper develops an econometric approach that views travel costs as an unobserved latent variable. The latent variable approach utilizes indicators to capture the role of individual travel costs in recreational demand models. The latent variables approach has at least two advantages over conventional approaches. One, the indicators can include both traditional components such as time and distance and non-traditional components such as the scenic beauty. Second, the estimation procedure results in each indicator being valued in dollar terms.
Original language | English (US) |
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Pages (from-to) | 368-377 |
Number of pages | 10 |
Journal | Journal of Environmental Economics and Management |
Volume | 29 |
Issue number | 3 |
DOIs | |
State | Published - Nov 1995 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law