WEAI/AERE 2009 - Individual Paper Abstract
Title: Demand for Visits to Southwestern National Parks: Efficient Estimation with Time-Invariant and Rarely Changing Variables and Park-Specific Fixed Effects
Author(s):
George B. FRISVOLD, Department of Agricultural & Resource Economics, 319 Cesar Chavez Building, University of Arizona, Tucson, AZ 85721, (520) 621-6269, frisvold@ag.arizona.edu; Xudong Ma, University of Arizona.
Abstract:
This study estimates factors affecting annual visits to national parks in the Southwestern United States from 1980-2003. The time-series cross section data includes national parks, historical parks, monuments, and recreation areas in Arizona, New Mexico, and southern Utah, Nevada, and California. The study applies a fixed-effects vector decomposition (FEVD) estimator--a three-stage estimator that separates effects of time-invariant or rarely changing variables, while including fixed effects. Estimation results find (a) parks exhibit spatial complementarity (i.e. being closer to other parks encourages more visits), (b) the elasticity of visits with respect to gas price is about -0.2, (c) 30-year average weather variables are important predictors of park visits, (d) changes in designation from national monument to park significantly increases visits, and (e) falling reservoir levels from drought is one of the most important factors affecting total park visits to the entire region.