Spatial random utility model with an application to recreation demand

Oleg A. Smirnov and Kevin Egan

Economic Modelling, 2012, vol. 29, issue 1, 72-78

Abstract: The paper examines the relevance of unobserved spatial dependence between individual decision-makers in the analysis of discrete choices. To incorporate spatial interdependencies in the behavioral analysis, we propose a spatial random utility model of recreation demand. The model combines the set-theoretic concept of spatial neighborhood, endogeneity of spatial interdependencies, and unobservable individual preferences. Our estimation procedure uses an efficient pseudo maximum likelihood estimator. We apply the model to the study of recreational travel demand in Iowa and evaluate the significance of unobserved spatial interdependencies between individual households in recreational travel choices.

Keywords: Random utility model; Discrete choice; Spatial dependence; Travel demand (search for similar items in EconPapers)
JEL-codes: C2 Q26 R22 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:1:p:72-78

DOI: 10.1016/j.econmod.2010.09.026

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