Expenditure Elasticities of the Demand for Leisure Services

Tim Pawlowski and Christoph Breuer

No 1004, Working Papers from International Association of Sports Economists, North American Association of Sports Economists

Abstract: Although some research has already focused on the analysis of expenditure elasticities of leisure demand, some shortcomings with regard to the content and the underlying theoretical model as well as the applied methods exist. This paper aims at avoiding these problems to provide consistent derivatives of leisure service expenditure elasticities. Therefore, a regular demand system is derived from microeconomic duality theory. To implement leisure specific demand factors (i.e., demand- and supply-based sports and recreational opportunities as well as sports and recreational preferences) while still being consistent with neoclassical demand theory, the basic model is extended by applying the demographic translation framework. Data of the continuous household budget survey (n=7,724) from Germany is used for the estimation of the derived demand system. It is shown how sensitive the results are depending on the applied (censored) regression model: 16 out of 18 analyzed services are indicated as luxury goods based on the findings of the Tobit model type I but as necessities based on the findings of the Tobit model type II. Possible implications are presented and discussed.

Keywords: Expenditure elasticity; demand; services; Tobit; Almost Ideal Demand System (search for similar items in EconPapers)
JEL-codes: D01 D12 L83 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-10
New Economics Papers: this item is included in nep-spo
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://web.holycross.edu/RePEc/spe/PawlowskiBreuer_LeisureElasticities.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://web.holycross.edu/RePEc/spe/PawlowskiBreuer_LeisureElasticities.pdf [302 Found]--> https://web.holycross.edu/RePEc/spe/PawlowskiBreuer_LeisureElasticities.pdf)

Related works:
Journal Article: Expenditure elasticities of the demand for leisure services (2012)
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:spe:wpaper:1004

Access Statistics for this paper

More papers in Working Papers from International Association of Sports Economists Contact information at EDIRC., North American Association of Sports Economists Contact information at EDIRC.
Bibliographic data for series maintained by Victor Matheson ().