Spatial Dependence in Random Utility Model with an Application to Recreation Demand

Posted: 8 Apr 2011

See all articles by Oleg A. Smirnov

Oleg A. Smirnov

University of Toledo - Department of Economics

Kevin Egan

affiliation not provided to SSRN

Date Written: April 7, 2011

Abstract

The purpose of this paper is to establish whether the unobserved spatial interdependencies between individual households influence recreational travel choices. To coherently incorporate spatial interdependencies in the behavioral analysis, we propose spatial random utility model of recreation demand. The key features of the spatial random utility are the set-theoretic concept of spatial neighborhood and endogeneity of spatial interdependencies. Our estimation procedure uses a computationally efficient pseudo maximum likelihood estimator. We apply the model to the study of recreational travel demand in Iowa.

Keywords: recreation demand, random utility models, discrete choice, spatial dependence

JEL Classification: Q26, C21, C25

Suggested Citation

Smirnov, Oleg A. and Egan, Kevin, Spatial Dependence in Random Utility Model with an Application to Recreation Demand (April 7, 2011). Economic Modelling, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1804956

Oleg A. Smirnov (Contact Author)

University of Toledo - Department of Economics ( email )

Toledo, OH 43606
United States

Kevin Egan

affiliation not provided to SSRN ( email )

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
494
PlumX Metrics