Wednesday, October 13, 2010: 11:15 AM
This paper compares several models to estimate tourism demand for a range of host countries. Models include various forms of the almost ideal demand system (AIDS) model, the Rotterdam model, and the translog model. These models all have a strong theoretical background in demand theory and flexible functional form. Properties of a demand function can be tested and imposed. Source countries include England, Germany, and the US. These countries have different currencies and it may be expected English tourists are less sensitive to prices since the pound is the stronger than the euro and the dollar. Data covers the years from 1982-2007.