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Douglas M. Larson
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Publisher: Journals Gateway
The Review of Economics and Statistics (2003) 85 (4): 953–961.
Published: 01 November 2003
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An incomplete demand system is developed for recreation and donation choices, subject to both money and time constraints. The model results in a three-good system, with an endogenous marginal value of time for estimation. The model is implemented by adapting Deaton and Muellbauer's locally flexible almost ideal demand system to a two-constraint recreation model of trips and donations of California whale watchers. Exact welfare measures are calculated for changes in costs, as well as for whale population changes. Results indicate a use and a nonuse component of overall willingness to pay for increases in environmental quality.