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Dynamic and Stochastic Structures in Tourism Demand Modeling

Nordström, Jonas LU (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)
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author
publishing date
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
2010-12-21 12:33:49
date last changed
2016-10-13 04:24:54
@misc{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    = {ARRAY(0x8091338)},
  series       = {Empirical Economics},
  title        = {Dynamic and Stochastic Structures in Tourism Demand Modeling},
  url          = {http://dx.doi.org/10.1007/s00181-005-0238-8},
  volume       = {30},
  year         = {2005},
}