Why elasticities from demand models using different dependent variables should not be compared

Jaume Rossello ()

Current Issues in Tourism, 2023, vol. 26, issue 20, 3336-3347

Abstract: Tourism demand modelling is one of the most recurrent topics in tourism economics literature. However, difficulties in defining tourism as a product have led to different ways of capturing the concept of tourism demand. In this paper, the main measures used in relevant empirical literature are considered, relating them from a theoretical point of view and analysing the empirical consequences and comparability of each one's use on the elasticity values of the determinants. Special attention is paid to the price elasticity when tourism demand models, based on tourism expenditures or receipts, are compared with those that use the number of tourists. The results show that different demand measures can lead to different estimated elasticity values that are not comparable. Furthermore, in the specific case of the price elasticity, the divergence in the estimated elasticity value of the different models can be quantified.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13683500.2022.2119124 (text/html)
Access to full text is restricted to subscribers.

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:taf:rcitxx:v:26:y:2023:i:20:p:3336-3347

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rcit20

DOI: 10.1080/13683500.2022.2119124

Access Statistics for this article

Current Issues in Tourism is currently edited by Jennifer Tunstall

More articles in Current Issues in Tourism from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().