Time is Money: Improved Valuation of Time and Transportation Costs

The proper valuation of time is important for estimating the demand for several economic goods. This article explores the proper valuation of time when estimating recreational demand, where time costs represent a substantial portion of the "purchase price''. To estimate demand, the author used a travel cost framework to analyze actual behavior ("revealed preference data'') and hypothetical behavior ("stated preference data''), which is induced by hypothetical increases in access fees, travel time, and travel distance. By comparing the responses to these three contingencies, the analysis adjusts and improves the valuation of time costs. As evidence of this improvement, this analysis demonstrates a great increase in the consistency between the revealed and stated data. Similarly, this paper improves the valuation of transportation-related costs.

Language

  • English

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Filing Info

  • Accession Number: 01010576
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Nov 12 2005 7:04AM