Short Run Constraints and the Increasing Marginal Value of Time in Recreation

43 Pages Posted: 26 May 2009 Last revised: 14 Dec 2022

See all articles by Raymond B. Palmquist

Raymond B. Palmquist

North Carolina State University

Daniel J. Phaneuf

North Carolina State University - Department of Agricultural & Resource Economics

V. Kerry Smith

Arizona State University (ASU) - Economics Department; National Bureau of Economic Research (NBER)

Date Written: May 2009

Abstract

Leisure activities such as local recreation trips usually take place in discrete blocks of time that are surrounded by time devoted to other commitments. It can be costly to transfer time between blocks to allow for longer outings. These observations affect the value of time within those blocks and suggest that traditional methods for valuing time using labor markets miss important considerations. This paper presents a new model for time valuation that uses non-employment time commitments to infer the shadow value of time spent in recreation. A unique survey that elicited revealed and stated preference data on household time allocation is used to implement the model. The results support the conclusion that there is an increasing marginal value of time for recreation as the trip length increases.

Suggested Citation

Palmquist, Raymond B. and Phaneuf, Daniel J. and Smith, V. Kerry, Short Run Constraints and the Increasing Marginal Value of Time in Recreation (May 2009). NBER Working Paper No. w14986, Available at SSRN: https://ssrn.com/abstract=1408906

Raymond B. Palmquist

North Carolina State University ( email )

Raleigh, NC 27695-8110
United States
919-515-3274 (Phone)
919-515-7873 (Fax)

Daniel J. Phaneuf

North Carolina State University - Department of Agricultural & Resource Economics ( email )

Box 8109
3332 Nelson Hall
Raleigh, NC 27695-8109
United States

V. Kerry Smith (Contact Author)

Arizona State University (ASU) - Economics Department ( email )

Tempe, AZ 85287-3806
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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