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Demand curves for public facilities

Cesario, Frank J.

Abstract Attempts to estimate social benefits of public services by use of a willingness-to-pay metric have been hampered by the inability to generate the relevant demand curves. In this paper a novel technique for computing demand curves for existing and proposed direct and indirect public service facilities is developed. The technique is an extension of the Hotelling-Clawson-Knetsch method for estimating benefits associated with certain types of outdoor recreation facilities. The method relies upon the use of travel cost as a proxy for price; extensions are made in the way that substitution effects are incorporated into the model. After the model and its properties are specified a successful empirical application is made in the estimation of the benefits of selected outdoor recreation sites in the northeast United States. Results indicate that realistic estimates can be made at a relatively low cost.

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Demand curves for public facilities

Cesario, Frank J.

Abstract Attempts to estimate social benefits of public services by use of a willingness-to-pay metric have been hampered by the inability to generate the relevant demand curves. In this paper a novel technique for computing demand curves for existing and proposed direct and indirect public service facilities is developed. The technique is an extension of the Hotelling-Clawson-Knetsch method for estimating benefits associated with certain types of outdoor recreation facilities. The method relies upon the use of travel cost as a proxy for price; extensions are made in the way that substitution effects are incorporated into the model. After the model and its properties are specified a successful empirical application is made in the estimation of the benefits of selected outdoor recreation sites in the northeast United States. Results indicate that realistic estimates can be made at a relatively low cost.

Demand curves for public facilities

Cesario, Frank J.

Abstract Attempts to estimate social benefits of public services by use of a willingness-to-pay metric have been hampered by the inability to generate the relevant demand curves. In this paper a novel technique for computing demand curves for existing and proposed direct and indirect public service facilities is developed. The technique is an extension of the Hotelling-Clawson-Knetsch method for estimating benefits associated with certain types of outdoor recreation facilities. The method relies upon the use of travel cost as a proxy for price; extensions are made in the way that substitution effects are incorporated into the model. After the model and its properties are specified a successful empirical application is made in the estimation of the benefits of selected outdoor recreation sites in the northeast United States. Results indicate that realistic estimates can be made at a relatively low cost.

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Title:

Demand curves for public facilities

Contributors:

Cesario, Frank J. (author)

Published in:

The Annals of Regional Science ; 10

Publication date:

1976

ISSN:

DOI:

https://doi.org/10.1007/BF01453548

Type of media:

Article (Journal)

Type of material:

Print

Language:

English

Keywords:

Regionalökonomik , Kommunalpolitik , Umweltforschung , Regionalforschung , Regionalwissenschaft , Regionalentwicklung , Städtebau , Zeitschrift , Stadtentwicklung , Raumordnung , Umweltwissenschaften

Classification:

BKL: 74.72 Stadtplanung, kommunale Planung / 83.64 Regionalwirtschaft / 74.12 Stadtgeographie, Siedlungsgeographie
Local classification TIB: 770/3010

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