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Expenditure Elasticities of the Demand for Leisure Services

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  • Tim Pawlowski

    (Institute of Sport Economics and Sport Management, German Sport University Cologne)

  • Christoph Breuer

    (Institute of Sport Economics and Sport Management, German Sport University Cologne)

Abstract

Although some research has already focused on the analysis of expenditure elasticities of leisure demand, some shortcomings with regard to the content and the underlying theoretical model as well as the applied methods exist. This paper aims at avoiding these problems to provide consistent derivatives of leisure service expenditure elasticities. Therefore, a regular demand system is derived from microeconomic duality theory. To implement leisure specific demand factors (i.e., demand- and supply-based sports and recreational opportunities as well as sports and recreational preferences) while still being consistent with neoclassical demand theory, the basic model is extended by applying the demographic translation framework. Data of the continuous household budget survey (n=7,724) from Germany is used for the estimation of the derived demand system. It is shown how sensitive the results are depending on the applied (censored) regression model: 16 out of 18 analyzed services are indicated as luxury goods based on the findings of the Tobit model type I but as necessities based on the findings of the Tobit model type II. Possible implications are presented and discussed.

Suggested Citation

  • Tim Pawlowski & Christoph Breuer, 2010. "Expenditure Elasticities of the Demand for Leisure Services," Working Papers 1004, International Association of Sports Economists;North American Association of Sports Economists.
    • Handle: RePEc:spe:wpaper:1004
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    1. Muñiz, Cristina & Rodríguez, Plácido & Suárez, María J., 2014. "Sports and cultural habits by gender: An application using count data models," Economic Modelling, Elsevier, vol. 36(C), pages 288-297.
    2. Thibaut, Erik & Eakins, John & Vos, Steven & Scheerder, Jeroen, 2017. "Time and money expenditure in sports participation: The role of income in consuming the most practiced sports activities in Flanders," Sport Management Review, Elsevier, vol. 20(5), pages 455-467.
    3. Kapeliushnikov, R. & Sharunina, A., 2020. "Consumption of cultural goods in Russia: What household surveys tell us?," Journal of the New Economic Association, New Economic Association, vol. 47(3), pages 197-205.
    4. Jorge Gonz�lez, 2015. "Estimating income elasticities of leisure activities using cross-sectional categorized data," Documentos de Trabajo dt2015-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    5. Giebeler, Constanze & Rebeggiani, Luca, 2019. "Who Loves to Gamble? Socio-Economic Factors Determining Gambling Behaviour in Germany," MPRA Paper 94735, University Library of Munich, Germany.
    6. Brad R. Humphreys & Jane E. Ruseski & Jie Yang, 2020. "Household consumption decisions: will expanding sports betting impact health?," Review of Economics of the Household, Springer, vol. 18(4), pages 1079-1100, December.
    7. Carla Cristina Rosa de Almeida & João Policarpo Rodrigues Lima & Maria Fernanda Freire Gatto, 2020. "Expenditure on cultural events: preferences or opportunities? An analysis of Brazilian consumer data," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(3), pages 451-480, September.
    8. Lera-López, Fernando & Suárez, María José, 2012. "Deporte activo y pasivo: ¿Una relación de conveniencia?/Active and Passive Sport: Is it a Marriage of Convenience?," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 489-512, Agosto.
    9. Peter Fredman & Daniel Wikström, 2018. "Income elasticity of demand for tourism at Fulufjället National Park," Tourism Economics, , vol. 24(1), pages 51-63, February.
    10. Song Liu & Lin-Lin Xue, 2022. "How to Promote Balanced and Healthy Development of Residents’ Leisure: Based on the Analysis on the Spatiotemporal Evolution of the Scale Structure of Leisure Consumption of Urban Residents in China," Sustainability, MDPI, vol. 14(22), pages 1-15, November.
    11. Makshanchikov, Konstantin, 2020. "Russians’ spending on sports: Econometric analysis on Levada-Center data," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 60, pages 115-138.

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    More about this item

    Keywords

    Expenditure elasticity; demand; services; Tobit; Almost Ideal Demand System;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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