Valuing Time in Travel Cost Demand Analysis: An Empirical Investigation

The opportunity cost of time is usually a significant part of the price variable in the travel cost demand model. Thus, its accurate measurement is important to the estimation of demand and benefit valuation for nonmarket resources. This paper empirically tests models which assume that income is the basis for opportunity time cost with an alternative "pooled" model based on a disequilibrium labor market for some recreationists. Acceptance of the hypothesis that disequilibrium models may be necessary for some individuals implies increased survey information requirements so that the appropriate model can be applied to each individual.