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Intertemporal Substitution in Travel Cost Models with Seasonal Time Constraints
- Land Economics
- University of Wisconsin Press
- Volume 96, Number 3, August 2020
- pp. 399-417
- Article
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ABSTRACT:
Travel cost models using the wage rate to value time make the implicit assumption that the value of time is equalized throughout the year. We develop a seasonal travel cost model that allows the value of time to vary by season. We estimate the model using data from a survey of recreational anglers in the Gulf of Mexico. We find that people's value of time is 55% larger on average in the summer compared to other times of year and find substantial differences in derived welfare estimates if a time-constant value of time measure is used instead. (JEL Q26, Q51)