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Modelling Micro-Level Tourism Expenditure: Recommendations on the Choice of Independent Variables, Functional Form and Estimation Technique

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  • Christer Thrane

    (Lillehammer University College, Faculty of Economics and Organization Science, Box 952, 2604 Lillehammer, Norway, and Institute of Transport Economics, Gaustadalléen 2, 0349 Oslo, Norway)

Abstract

Marcussen (2011a) distinguished between the vital and the not-so-vital determinants of micro-level tourism expenditure. Arguably, the lessons learned from Marcussen's study, combined with best practice in recent econometric modelling, have set a new higher standard for future research on this topic. Against this background, this paper gives practical advice on how to improve the modelling of micro-level tourism expenditure in the future. Three issues are discussed: (a) the choice of independent variables; (b) the choice of functional form; and (c) the choice of estimation technique. Empirical illustrations are provided.

Suggested Citation

  • Christer Thrane, 2014. "Modelling Micro-Level Tourism Expenditure: Recommendations on the Choice of Independent Variables, Functional Form and Estimation Technique," Tourism Economics, , vol. 20(1), pages 51-60, February.
    • Handle: RePEc:sae:toueco:v:20:y:2014:i:1:p:51-60
    DOI: 10.5367/te.2013.0254
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    References listed on IDEAS

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    1. Christer Thrane & Eivind Farstad, 2012. "Nationality as a Segmentation Criterion in Tourism Research: The Case of International Tourists' Expenditures While on Trips in Norway," Tourism Economics, , vol. 18(1), pages 203-217, February.
    2. repec:bla:jecsur:v:16:y:2002:i:4:p:569-89 is not listed on IDEAS
    3. Peter E. Kennedy, 2002. "Sinning in the Basement: What are the Rules? The Ten Commandments of Applied Econometrics," Journal of Economic Surveys, Wiley Blackwell, vol. 16(4), pages 569-589, September.
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    1. Faruk Urak & Nihat Küçük & Abdulbaki Bilgiç & Steven T Yen, 2023. "Modeling censored tourism expenditures in Turkey with non-normal and heteroscedastic errors: An application of the inverse hyperbolic sine double-hurdle model," Tourism Economics, , vol. 29(3), pages 718-741, May.
    2. Berta Ferrer-Rosell & Germà Coenders & Glòria Mateu-Figueras & Vera Pawlowsky-Glahn, 2016. "Understanding Low-Cost Airline Users' Expenditure Patterns and Volume," Tourism Economics, , vol. 22(2), pages 269-291, April.
    3. Robert Štefko & Jozef Džuka & Eva Litavcová & Darina Ňakatova & Martin Lačný, 2020. "Psychological Characteristics of a Tourist as Predictors of Expenditures: An Analytical Review and Proposal of the Predictive Model," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 14(3), September.
    4. Dora Smolčić Jurdana & Daniela Soldić Frleta, 2016. "Factors affecting the expenditure of domestic and foreign tourists - the evidence from Rijeka and Opatija, Croatia," Tourism and Hospitality Industry 31, University of Rijeka, Faculty of Tourism and Hospitality Management.
    5. António Almeida & Brian Garrod, 2017. "Insights from analysing tourist expenditure using quantile regression," Tourism Economics, , vol. 23(5), pages 1138-1145, August.
    6. Mayer Marius & Vogt Luisa, 2016. "Economic effects of tourism and its influencing factors: An overview focusing on the spending determinants of visitors," Zeitschrift für Tourismuswissenschaft, De Gruyter, vol. 8(2), pages 169-198, November.
    7. Christer Thrane, 2016. "Modelling tourists’ length of stay," Tourism Economics, , vol. 22(6), pages 1352-1366, December.
    8. Jorge V Pérez-Rodríguez & Francisco Ledesma-Rodríguez, 2021. "Unconditional quantile regression and tourism expenditure: The case of the Canary Islands," Tourism Economics, , vol. 27(4), pages 626-648, June.
    9. Engström, Truls & Kipperberg, Gorm, 2015. "Decomposing the heterogeneous discretionary spending of international visitors to Fjord Norway," Tourism Management, Elsevier, vol. 51(C), pages 131-141.
    10. Beata Gavurova & Martin Rigelsky & Martin Mikeska, 2023. "Relationships between road transport indicators and expenditure of visitors in the context of European countries’ tourism competitiveness," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(2), pages 393-418, June.
    11. Christer Thrane, 2016. "The Determinants of Norwegians' Summer Tourism Expenditure: Foreign and Domestic Trips," Tourism Economics, , vol. 22(1), pages 31-46, February.
    12. Rudkin, Simon & Sharma, Abhijit, 2017. "Enhancing understanding of tourist spending using unconditional quantile regression," Annals of Tourism Research, Elsevier, vol. 66(C), pages 188-191.
    13. Emilio Gómez-Déniz & Jorge V Pérez-Rodríguez & José Boza-Chirino, 2020. "Modelling tourist expenditure at origin and destination," Tourism Economics, , vol. 26(3), pages 437-460, May.
    14. David Boto-García & José Francisco Baños Pino, 2024. "The economics of second-home tourism: Are there expenditure reallocation effects from accommodation savings?," Tourism Economics, , vol. 30(4), pages 969-995, June.
    15. Gómez–Déniz, E. & Pérez–Rodríguez, J.V., 2019. "Modelling distribution of aggregate expenditure on tourism," Economic Modelling, Elsevier, vol. 78(C), pages 293-308.
    16. Sharma, Abhijit & Woodward, Richard & Grillini, Stefano, 2020. "Unconditional quantile regression analysis of UK inbound tourist expenditures," Economics Letters, Elsevier, vol. 186(C).
    17. Luojia Wang & Kerui Du & Bin Fang & Rob Law, 2023. "Escape from air pollution: How does air quality in the place of residence shape tourism consumption?," Tourism Economics, , vol. 29(4), pages 1074-1099, June.
    18. Xiang Wei & Songshan (Sam) Huang & Ghialy Yap & Xinfang Wu & Ariuna Taivan, 2018. "The influence of national holiday structure on domestic tourism expenditure," Tourism Economics, , vol. 24(7), pages 781-800, November.
    19. Jorge Moll-de-Alba & Lluís Prats & Lluís Coromina, 2016. "The need to adapt to travel expenditure patterns. A study comparing business and leisure tourists in Barcelona," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 253-267, August.
    20. Chih-Wen Yang & Cheng-Lung (Richard) Wu & Jin-Long Lu, 2021. "Exploring the interdependency and determinants of tourism participation, expenditure, and duration: An analysis of Taiwanese citizens traveling abroad," Tourism Economics, , vol. 27(4), pages 649-669, June.

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