Dynamic and Stochastic Structures in Tourism Demand Modeling
(2005) In Empirical Economics 30(2). p.379-392- Abstract
- In this paper we consider a model for international tourism demand. The point of departure of the analysis is a utility function that is both dynamic and stochastic. In the model the stochastic component is interpreted as random changes in preferences for goods and services, while the dynamic component can be seen as either habit formation or as interdependent preferences. The resulting demand functions are estimated as a multivariate state space model, where the stochastic components enter the model as stochastic seasonal and trend components. An application is constructed for different segments of the Swedish tourism market. The results indicate the importance of including both dynamic and stochastic components in the utility function,... (More)
- In this paper we consider a model for international tourism demand. The point of departure of the analysis is a utility function that is both dynamic and stochastic. In the model the stochastic component is interpreted as random changes in preferences for goods and services, while the dynamic component can be seen as either habit formation or as interdependent preferences. The resulting demand functions are estimated as a multivariate state space model, where the stochastic components enter the model as stochastic seasonal and trend components. An application is constructed for different segments of the Swedish tourism market. The results indicate the importance of including both dynamic and stochastic components in the utility function, and the importance of using disaggregate data to enable investigation of each market segment. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1736849
- author
- Nordström, Jonas LU
- publishing date
- 2005
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Empirical Economics
- volume
- 30
- issue
- 2
- pages
- 379 - 392
- publisher
- Physica Verlag
- external identifiers
-
- scopus:24044457598
- ISSN
- 0377-7332
- DOI
- 10.1007/s00181-005-0238-8
- language
- English
- LU publication?
- no
- id
- 9e9c2084-2f55-40c7-834b-7bf612c74a7c (old id 1736849)
- date added to LUP
- 2016-04-04 09:09:04
- date last changed
- 2022-04-15 22:01:01
@article{9e9c2084-2f55-40c7-834b-7bf612c74a7c,
abstract = {{In this paper we consider a model for international tourism demand. The point of departure of the analysis is a utility function that is both dynamic and stochastic. In the model the stochastic component is interpreted as random changes in preferences for goods and services, while the dynamic component can be seen as either habit formation or as interdependent preferences. The resulting demand functions are estimated as a multivariate state space model, where the stochastic components enter the model as stochastic seasonal and trend components. An application is constructed for different segments of the Swedish tourism market. The results indicate the importance of including both dynamic and stochastic components in the utility function, and the importance of using disaggregate data to enable investigation of each market segment.}},
author = {{Nordström, Jonas}},
issn = {{0377-7332}},
language = {{eng}},
number = {{2}},
pages = {{379--392}},
publisher = {{Physica Verlag}},
series = {{Empirical Economics}},
title = {{Dynamic and Stochastic Structures in Tourism Demand Modeling}},
url = {{http://dx.doi.org/10.1007/s00181-005-0238-8}},
doi = {{10.1007/s00181-005-0238-8}},
volume = {{30}},
year = {{2005}},
}