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

Jeroen Klijs, Jack Peerlings and Wim Heijman
Additional contact information
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

Tourism Economics, 2015, vol. 21, issue 5, 931-956

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.

Keywords: tourism and recreation management; economic impacts; non-linear input–output model; input substitution; Zeeland (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2014.0398 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:21:y:2015:i:5:p:931-956

DOI: 10.5367/te.2014.0398

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().