IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v29y2012i1p72-78.html
   My bibliography  Save this article

Spatial random utility model with an application to recreation demand

Author

Listed:
  • Smirnov, Oleg A.
  • Egan, Kevin J.

Abstract

The paper examines the relevance of unobserved spatial dependence between individual decision-makers in the analysis of discrete choices. To incorporate spatial interdependencies in the behavioral analysis, we propose a spatial random utility model of recreation demand. The model combines the set-theoretic concept of spatial neighborhood, endogeneity of spatial interdependencies, and unobservable individual preferences. Our estimation procedure uses an efficient pseudo maximum likelihood estimator. We apply the model to the study of recreational travel demand in Iowa and evaluate the significance of unobserved spatial interdependencies between individual households in recreational travel choices.

Suggested Citation

  • Smirnov, Oleg A. & Egan, Kevin J., 2012. "Spatial random utility model with an application to recreation demand," Economic Modelling, Elsevier, vol. 29(1), pages 72-78.
    • Handle: RePEc:eee:ecmode:v:29:y:2012:i:1:p:72-78
    DOI: 10.1016/j.econmod.2010.09.026
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999310002038
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2010.09.026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-561, May.
    2. Klaus Moeltner & J. Scott Shonkwiler, 2005. "Correcting for On-Site Sampling in Random Utility Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 327-339.
    3. Bierlaire, M. & Bolduc, D. & McFadden, D., 2008. "The estimation of generalized extreme value models from choice-based samples," Transportation Research Part B: Methodological, Elsevier, vol. 42(4), pages 381-394, May.
    4. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 115-136, Summer.
    5. Conley, Timothy G. & Topa, Giorgio, 2007. "Estimating dynamic local interactions models," Journal of Econometrics, Elsevier, vol. 140(1), pages 282-303, September.
    6. Antonio Páez & Darren M Scott, 2007. "Social Influence on Travel Behavior: A Simulation Example of the Decision to Telecommute," Environment and Planning A, , vol. 39(3), pages 647-665, March.
    7. William A. Brock & Steven N. Durlauf, 2002. "A Multinomial-Choice Model of Neighborhood Effects," American Economic Review, American Economic Association, vol. 92(2), pages 298-303, May.
    8. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, September.
    9. Smirnov, Oleg A. & Anselin, Luc E., 2009. "An O(N) parallel method of computing the Log-Jacobian of the variable transformation for models with spatial interaction on a lattice," Computational Statistics & Data Analysis, Elsevier, vol. 53(8), pages 2980-2988, June.
    10. Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
    11. Bekhor, Shlomo & Prashker, Joseph N., 2008. "GEV-based destination choice models that account for unobserved similarities among alternatives," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 243-262, March.
    12. Phaneuf, Daniel J. & Smith, V. Kerry, 2006. "Recreation Demand Models," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 15, pages 671-761, Elsevier.
    13. Lung-Fei Lee, 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, Econometric Society, vol. 72(6), pages 1899-1925, November.
    14. Edward Morey & Jennifer Thacher & William Breffle, 2006. "Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 91-115, May.
    15. John A. Downing, 2009. "Valuing Water Quality as a Function of Water Quality Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 106-123.
    16. Smirnov, Oleg A., 2010. "Modeling spatial discrete choice," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 292-298, September.
    17. Antonio Páez & Darren M Scott & Erik Volz, 2008. "A Discrete-Choice Approach to Modeling Social Influence on Individual Decision Making," Environment and Planning B, , vol. 35(6), pages 1055-1069, December.
    18. Elenna R Dugundji & László Gulyás, 2008. "Sociodynamic Discrete Choice on Networks in Space: Impacts of Agent Heterogeneity on Emergent Outcomes," Environment and Planning B, , vol. 35(6), pages 1028-1054, December.
    19. Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
    20. Koppelman, Frank S. & Sethi, Vaneet, 2005. "Incorporating variance and covariance heterogeneity in the Generalized Nested Logit model: an application to modeling long distance travel choice behavior," Transportation Research Part B: Methodological, Elsevier, vol. 39(9), pages 825-853, November.
    21. Bhat, Chandra R. & Guo, Jessica, 2004. "A mixed spatially correlated logit model: formulation and application to residential choice modeling," Transportation Research Part B: Methodological, Elsevier, vol. 38(2), pages 147-168, February.
    22. Jordan Louviere, 2006. "What You Don’t Know Might Hurt You: Some Unresolved Issues in the Design and Analysis of Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 173-188, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bolun Li & Robin Sickles & Jenny Williams, 2020. "Estimating Peer Effects on Career Choice: A Spatial Multinomial Logit Approach," Advances in Econometrics, in: Essays in Honor of Cheng Hsiao, volume 41, pages 359-381, Emerald Group Publishing Limited.
    2. Boncinelli, Fabio & Riccioli, Francesco & Marone, Enrico, 2015. "Do forests help to keep my body mass index low?," Forest Policy and Economics, Elsevier, vol. 54(C), pages 11-17.
    3. Seong-Hoon Cho & J.M. Bowker & Roland K. Roberts & Seunggyu Kim & Taeyoung Kim & Dayton M. Lambert, 2015. "Effects on Consumer Welfare of Visitor Satisfaction with Recreation Information Availability: A Case Study of the Allegheny National Forest," Tourism Economics, , vol. 21(4), pages 853-869, August.
    4. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
    5. Pot, Felix Johan & van Wee, Bert & Tillema, Taede, 2021. "Perceived accessibility: What it is and why it differs from calculated accessibility measures based on spatial data," Journal of Transport Geography, Elsevier, vol. 94(C).
    6. Shen, Yu & de Abreu e Silva, João & Martínez, Luis Miguel, 2014. "Assessing High-Speed Rail’s impacts on land cover change in large urban areas based on spatial mixed logit methods: a case study of Madrid Atocha railway station from 1990 to 2006," Journal of Transport Geography, Elsevier, vol. 41(C), pages 184-196.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Smirnov, Oleg A., 2010. "Modeling spatial discrete choice," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 292-298, September.
    2. Shen, Yu & de Abreu e Silva, João & Martínez, Luis Miguel, 2014. "Assessing High-Speed Rail’s impacts on land cover change in large urban areas based on spatial mixed logit methods: a case study of Madrid Atocha railway station from 1990 to 2006," Journal of Transport Geography, Elsevier, vol. 41(C), pages 184-196.
    3. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    4. Maness, Michael & Cirillo, Cinzia & Dugundji, Elenna R., 2015. "Generalized behavioral framework for choice models of social influence: Behavioral and data concerns in travel behavior," Journal of Transport Geography, Elsevier, vol. 46(C), pages 137-150.
    5. Pan, Xiaofeng & Rasouli, Soora & Timmermans, Harry, 2019. "Modeling social influence using sequential stated adaptation experiments: A study of city trip itinerary choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 652-672.
    6. Sener, Ipek N. & Pendyala, Ram M. & Bhat, Chandra R., 2011. "Accommodating spatial correlation across choice alternatives in discrete choice models: an application to modeling residential location choice behavior," Journal of Transport Geography, Elsevier, vol. 19(2), pages 294-303.
    7. Stefano Mainardi, 2021. "Preference heterogeneity, neighbourhood effects and basic services: logit kernel models for farmers’ climate adaptation in Ethiopia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6869-6912, May.
    8. Haoying Wang & Guohui Wu, 2022. "Modeling discrete choices with large fine-scale spatial data: opportunities and challenges," Journal of Geographical Systems, Springer, vol. 24(3), pages 325-351, July.
    9. Bhat, Chandra R., 2008. "The multiple discrete-continuous extreme value (MDCEV) model: Role of utility function parameters, identification considerations, and model extensions," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 274-303, March.
    10. Wang, Chih-Hao & Akar, Gulsah & Guldmann, Jean-Michel, 2015. "Do your neighbors affect your bicycling choice? A spatial probit model for bicycling to The Ohio State University," Journal of Transport Geography, Elsevier, vol. 42(C), pages 122-130.
    11. Ashutosh Tiwari & Timothy J. Richards, 2016. "Social Networks and Restaurant Ratings," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 153-174, April.
    12. Koichi Kuriyama & James Hilger & Michael Hanemann, 2013. "A Random Parameter Model with Onsite Sampling for Recreation Site Choice: An Application to Southern California Shoreline Sportfishing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(4), pages 481-497, December.
    13. Helen Scarborough & Jeff Bennett, 2012. "Cost–Benefit Analysis and Distributional Preferences," Books, Edward Elgar Publishing, number 14376.
    14. Hoyos Ramos, David, 2010. "Using discrete choice experiments for environmental valuation," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    15. Angel Bujosa & Antoni Riera & Robert Hicks, 2010. "Combining Discrete and Continuous Representations of Preference Heterogeneity: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(4), pages 477-493, December.
    16. Lewis, David J. & Provencher, Bill & Butsic, Van, 2009. "The dynamic effects of open-space conservation policies on residential development density," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 239-252, May.
    17. Marini, Annalisa, 2016. "Immigrants, Trust and Social Traps," MPRA Paper 69627, University Library of Munich, Germany, revised Feb 2016.
    18. Christos Makriyannis & Robert J. Johnston & Ewa Zawojska, 2022. "Do numerical probabilities promote informed stated preference responses under inherent uncertainty? Insight from a coastal adaptation choice experiment," Working Papers 2022-05, Faculty of Economic Sciences, University of Warsaw.
    19. Kosenius, Anna-Kaisa, 2010. "Heterogeneous preferences for water quality attributes: The Case of eutrophication in the Gulf of Finland, the Baltic Sea," Ecological Economics, Elsevier, vol. 69(3), pages 528-538, January.
    20. Steven N. Durlauf & Yannis M. Ioannides, 2010. "Social Interactions," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 451-478, September.

    More about this item

    Keywords

    Random utility model; Discrete choice; Spatial dependence; Travel demand;
    All these keywords.

    JEL classification:

    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:29:y:2012:i:1:p:72-78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.