Modelling Micro-Level Tourism Expenditure: Recommendations on the Choice of Independent Variables, Functional Form and Estimation Technique. (February 2014)

• Record Type: Journal Article
• Authors: Thrane, Christer
• Is Part Of: Tourism economics. Volume 20:Number 1(2014:Feb.)
• Page Start: 51
• Page End: 60
• Publication Date: 2014-02
• Subjects: tourism expenditure -- determinants -- statistical modelling -- model specification -- regression analysis -- quantile regression; Tourism -- Periodicals; 338.4791
• DOI: 10.5367/te.2013.0254
• Languages: English
• ISSNs: 1354-8166

Abstract

Marcussen (2011a) distinguished between the vital and the not-so-vital determinants of micro-level tourism expenditure. Arguably, the lessons learned from Marcussen's study, combined with best practice in recent econometric modelling, have set a new higher standard for future research on this topic. Against this background, this paper gives practical advice on how to improve the modelling of micro-level tourism expenditure in the future. Three issues are discussed: (a) the choice of independent variables; (b) the choice of functional form; and (c) the choice of estimation technique. Empirical illustrations are provided.