Department of Economics
North Carolina State University
Raleigh, NC 27695-8110
NBER Working Papers and Publications
|May 2009||Short Run Constraints and the Increasing Marginal Value of Time in Recreation|
with Daniel J. Phaneuf, V. Kerry Smith: w14986
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...
Published: Raymond Palmquist & Daniel Phaneuf & V. Smith, 2010.
"Short Run Constraints and the Increasing Marginal Value of Time in Recreation,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 46(1), pages 19-41, May.
citation courtesy of
|November 2007||Measuring the Values for Time|
with Daniel J. Phaneuf, V. Kerry Smith: w13594
Most economic models for time allocation ignore constraints on what people can actually do with their time. Economists recently have emphasized the importance of considering prior consumption commitments that constrain behavior. This research develops a new model for time valuation that uses time commitments to distinguish consumers' choice margins and the different values of time these imply. The model is estimated using a new survey that elicits revealed and stated preference data on household time allocation. The empirical results support the framework and find an increasing marginal opportunity cost of time as longer time blocks are used.