Modeling time- and money -constrained recreation demand: The case of California gray whale -watching

With particular application to California gray whale-watchers, a theoretically-consistent model of recreation behavior for individuals constrained by money and time is developed and estimated. Theoretical implications and integrability of the model allow derivation of demands, willingness to pay and a marginal value of time function from the underlying two-constraint utility maximization problem for joint estimation.;A demand systems approach is adopted and empirically specified by combining a locally flexible Almost Ideal Demand System with a globally flexible Fourier Flexible Form. A system of demand equations and willingness to pay equations for two different hypothetical increases in whale populations is estimated along with an marginal value of time function specified as an endogenous fraction of the wage rate. The gains in prediction from global flexibility are explored.;The model is extended to consider and estimate a marginal value of time specification, which varies by individual characteristics including prices, budgets, wage, gender, age and education and is consistent with the theoretical two-constraint utility maximization problem. Results are compared to more conventional approaches to valuing time.