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Ljungquist Baldesi, Angelo, 2017. Expenditure elasticity of demand for Swedish leisure aviation travel. Second cycle, A2E. Uppsala: SLU, Dept. of Economics



The purpose of this study is to find the expenditure elasticity of demand for leisure travel abroad by aviation for
Swedish Households. The study uses household expenditure survey data compiled by Statistics Sweden in 2012.
The independent variable ”Flight” has numerous values of zero, as many households spend no money this type
of travel. Having zero values for the dependent variables leads to the so-called censored variable problem where
a regular OLS regression leads to a downward bias. This is a well-known problem for expenditure survey data
that is dealt with using a Tobin Model. This study finds elasticity values ranging from 2.612 to 2.933.
Unfortunately, the models were rejected when the errors of the models failed the tests for Normality and
Homoskedasticity. Suggestions for further research and improved models are made.

Main title:Expenditure elasticity of demand for Swedish leisure aviation travel
Authors:Ljungquist Baldesi, Angelo
Supervisor:Hart, Robert
Examiner:Hess, Sebastian
Series:Examensarbete / SLU, Institutionen för ekonomi
Volume/Sequential designation:1124
Year of Publication:2017
Level and depth descriptor:Second cycle, A2E
Student's programme affiliation:NM005 Environmental Economics and Management - Master's Programme 120 HEC
Supervising department:(NL, NJ) > Dept. of Economics
Keywords:avitation, demand, elascitity, expenditure, Sweden, Tobit
Permanent URL:
Subject. Use of subject categories until 2023-04-30.:Economics and management
Deposited On:16 Nov 2017 11:15
Metadata Last Modified:16 Nov 2017 11:15

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