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Usefulness of Non-Linear Input—Output Models for Economic Impact Analyses in Tourism and Recreation

Author

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  • Jeroen Klijs

    (NHTV Breda University of Applied Sciences/Wageningen University Academy for Tourism, Mgr Hopmansstraat 1, 4817 JT, Breda, The Netherlands; and Department of Social Sciences, Wageningen University, PO Box 8130, 6700EW Wageningen, the Netherlands)

  • Jack Peerlings

    (Department of Social Sciences, Wageningen University, Wageningen, the Netherlands)

  • Wim Heijman

    (Department of Social Sciences, Wageningen University, Wageningen, the Netherlands)

Abstract

In tourism and recreation management it is still common practice to apply traditional input–output (IO) economic impact models, despite their well-known limitations. In this study the authors analyse the usefulness of applying a non-linear input–output (NLIO) model, in which price-induced input substitution is accounted for. For large changes in final demand, a NLIO model is more useful than a traditional IO model, leading to higher or lower impacts. For small changes in final demand input substitution is less likely. In that case the application of the NLIO may lead to the same results as a traditional IO model. To analyse changes of subsidies, a traditional IO model is not an option. A more flexible model, such as the NLIO, is required. The NLIO model forces researchers to make choices about capacity constraints, factor mobility and the substitution elasticity, which can be difficult but create flexibility and allow for more realism.

Suggested Citation

  • Jeroen Klijs & Jack Peerlings & Wim Heijman, 2015. "Usefulness of Non-Linear Input—Output Models for Economic Impact Analyses in Tourism and Recreation," Tourism Economics, , vol. 21(5), pages 931-956, October.
    • Handle: RePEc:sae:toueco:v:21:y:2015:i:5:p:931-956
    DOI: 10.5367/te.2014.0398
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    References listed on IDEAS

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    Cited by:

    1. Mattia Cai, 2016. "Greenhouse gas emissions from tourist activities in South Tyrol," Tourism Economics, , vol. 22(6), pages 1301-1314, December.
    2. Andrés Artal-Tur & José Miguel Navarro-Azorín & José María Ramos-Parreño, 2020. "Measuring the economic contribution of tourism to destinations within an input-output framework: some methodological issues," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 19(3), pages 243-265, September.
    3. Tobias Mueller & Steven Gronau, 2023. "Fostering Macroeconomic Research on Hydrogen-Powered Aviation: A Systematic Literature Review on General Equilibrium Models," Energies, MDPI, vol. 16(3), pages 1-33, February.
    4. Jim McFarlane & Bligh Grant & Boyd Blackwell & Stuart Mounter, 2017. "Combining amenity with experience," Tourism Economics, , vol. 23(5), pages 1076-1095, August.

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