Income Expenditure Elasticities for Recreation: Their Estimation and Relation to Demand for Recreation

The effect of changes in income on expenditures-on-recreation are examined in terms of income expenditure elasticities for recreation. Income expenditure elasticities are estimated for alternative income levels with data from a South Carolina Money Management program. In addition, inferences are made about the relationship between income expenditure elasticities and the demand for recreation; i.e., what happens to the demand for recreation as income changes.